David Solomon, the sometime plague rave DJ who moonlights as chief executive of investment bank Goldman Sachs, has lost about a third of his salary thanks to his firm’s involvement in the notorious 1MDB corruption scandal.
Solomon was relentlessly hyped by first a fawning financial press and then the electronic music press for his weekend hobby of DJing. These pieces also taught us that like most aspiring artists, Solomon also gets his own coffee, leaves his office door open and sometimes rides the subway when he’s staying at his $24 million Manhattan apartment (and not riding one of the firm’s two new private jets taking him to his $36 million estate in Aspen, Colorado.)
But Solomon’s salary was cut by 36% by the board following Goldman Sachs’ role in the 1Malaysia Development Berhad or 1MDB scandal. 1MDB was a Malaysian company wholly owned by the country’s Ministry of Finance which Malaysia’s former Prime Minister Najib Razak used to channel more than $700 million to his personal bank accounts. Goldman Sachs underwrote billions in state-backed bond sales for 1MDB, much of which was looted. Goldman disputed the amount, but pled guilty to conspiring to violate US anti-bribery laws and was fined $2.9 billion.
Solomon and other executives who had their pay docked were not “involved in or aware of the firm’s participation in illicit activity at the time the firm arranged the 1MDB bond transactions,” according to the firm’s filing with the US Securities and Exchange Commission this week. But the board views bribing foreign officials “an institutional failure, inconsistent with the high expectations it has for the firm.” Multiple Goldman executives were fined and others permanently barred from the banking industry for the bank’s role in the scandal.
Solomon, who DJs under the name “DJ D-Sol” and has released unfathomably terrible electronic music via the Goldman Sachs of dance music, Spinnin Records, was last seen in these parts DJing at a plague rave in the Hamptons over the summer. More than 2,000 attended the upscale event, for which New York Governor Andrew Cuomo announced $20,000 in fines.