15 June 2017
The Justice Department announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of approximately $540 million in assets associated with an international conspiracy to launder funds misappropriated from a Malaysian sovereign wealth fund. Combined with civil forfeiture complaints filed in July 2016, seeking more than $1 billion, and civil forfeiture complaints filed last week seeking approximately $100 million in assets, this case represents the largest action brought under the Kleptocracy Asset Recovery Initiative. Assets now subject to forfeiture in this case total almost $1.7 billion.
Acting Assistant Attorney General Kenneth A. Blanco, Acting U.S. Attorney Sandra R. Brown of the Central District of California, Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division, and Deputy Chief Don Fort of the IRS-Criminal Investigation (IRS-CI) made the announcement.
According to the complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1Malaysia Development Berhad (1MDB) was allegedly misappropriated by high-level officials of 1MDB and their associates. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
“The Criminal Division is steadfast in our efforts to protect the security, safety, and integrity of the American financial system from all manner of abuse, including by kleptocrats seeking to hide their ill-gotten or stolen wealth,” said Acting Assistant Attorney General Blanco. “Today’s complaints reveal another chapter of this multi-year, multi-billion-dollar fraud scheme, bringing the total identified stolen proceeds to $4.5 billion. This money financed the lavish lifestyles of the alleged co-conspirators at the expense and detriment of the Malaysian people. We are unwavering in our commitment to ensure the United States is not a safe haven for corrupt individuals and kleptocrats to hide their ill-gotten wealth or money, and that recovered assets be returned to the victims from which they were taken.”
“These cases involve billions of dollars that should have been used to help the people of Malaysia, but instead was used by a small number of individuals to fuel their astonishing greed,” said Acting U.S. Attorney Brown. “The misappropriation of 1MDB funds was accomplished with an extravagant web of lies and bogus transactions that were brought to light by the dedicated attorneys and law enforcement agents who continue to work on this matter. We simply will not allow the United States to be a place where corrupt individuals can expect to hide assets and lavishly spend money that should be used for the benefit of citizens of other nations.”
“Today’s filing serves as a reminder of the important role that the FBI plays in rooting out international corruption. When corrupt foreign officials launder funds through the United States in furtherance of their criminal activity, the FBI works tirelessly to help hold those officials accountable, and recover the misappropriated funds,” said Assistant Director Richardson. “I applaud all my colleagues and our international partners who have worked to help recover an immense amount of funds taken from the Malaysian people, who are the victims of this abhorrent case of kleptocracy.”
“Today’s announcement is the result of untangling a global labyrinth of multi-layered financial transactions allegedly used to divert billions of dollars from the people of Malaysia and fund the co-conspirators’ lavish lifestyles,” said Deputy Chief Fort. “The IRS is proud to partner with other law enforcement agencies and share its world-renowned financial investigative expertise in this complex financial investigation. It’s important for the world to see, that when people use the American financial system for corruption, the IRS will take notice.”
Read more here: https://www.justice.gov/opa/pr/us-seeks-recover-approximately-540-million-obtained-corruption-involving-malaysian-sovereign
By Justin Baer, Aruna Viswanatha and Bradley Hope. Published by The Wall Street Journal on 15 June 2017.
The lawsuits also allege that Mr. Low had given $8 million worth of jewelry to Ms. Kerr from New York jeweler Lorraine Schwartz, including an 11.72 carat heart-shaped diamond on Valentine’s Day in 2014. Mr. Low and Ms. Kerr were dating at the time, according to a person who knows them. Ms. Kerr was married last month to Snap Inc. co-founder Evan Spiegel.
Most of the assets in the lawsuits belong to Mr. Low, a flamboyant Malaysian deal maker who is a central figure in the alleged misappropriation of funds from 1MDB, according to the Justice Department. His yacht was sighted Thursday off the coast of the Cambodian island of Koh Rong, according to ship-tracking site MarineTraffic.
The lawsuits allege Mr. Low used money siphoned from 1MDB to buy jewelry worth $200 million from companies around the world between April 2013 and September 2014. Some of that was given to Ms. Kerr, and nearly $30 million was given to Rosmah Mansor, the wife of Mr. Najib, according to the suits.
Ms. Rosmah received in early 2014 a 22-carat pink diamond necklace from Lorraine Schwartz worth $27.3 million, allegedly arranged by Mr. Low and paid for with money stolen from 1MDB, according to the suit. Later that year, Mr. Low arranged for Ms. Rosmah to get a further $1.3 million worth of gold necklaces from Lorraine Schwartz. A spokesman for Ms. Rosmah didn’t respond to requests for comment.
The lawsuits also allege that Mr. Low had given $8 million worth of jewelry to Ms. Kerr from New York jeweler Lorraine Schwartz, including an 11.72 carat heart-shaped diamond on Valentine’s Day in 2014. Mr. Low and Ms. Kerr were dating at the time, according to a person who knows them. Ms. Kerr was married last month to Snap Inc. co-founder Evan Spiegel.
Most of the assets in the lawsuits belong to Mr. Low, a flamboyant Malaysian deal maker who is a central figure in the alleged misappropriation of funds from 1MDB, according to the Justice Department. His yacht was sighted Thursday off the coast of the Cambodian island of Koh Rong, according to ship-tracking site MarineTraffic.
The lawsuits allege Mr. Low used money siphoned from 1MDB to buy jewelry worth $200 million from companies around the world between April 2013 and September 2014. Some of that was given to Ms. Kerr, and nearly $30 million was given to Rosmah Mansor, the wife of Mr. Najib, according to the suits.
Ms. Rosmah received in early 2014 a 22-carat pink diamond necklace from Lorraine Schwartz worth $27.3 million, allegedly arranged by Mr. Low and paid for with money stolen from 1MDB, according to the suit. Later that year, Mr. Low arranged for Ms. Rosmah to get a further $1.3 million worth of gold necklaces from Lorraine Schwartz. A spokesman for Ms. Rosmah didn’t respond to requests for comment.
Read more here: https://www.wsj.com/articles/u-s-targets-540-million-of-new-assets-in-1mdb-fraud-case-1497539922?mod=e2twa
Published by The Malaysian Insight on 16 June 2017.
HOLLYWOOD actor and Oscar-award winner Leonardo DiCaprio has surrendered an Oscar statue originally won by Marlon Brando to the US government as part of the Department of Justice’s (DoJ) probe into allegations of corruption in Malaysia’s state investment fund, 1Malaysia Development Berhad (1MDB).
The statue was allegedly given to DiCaprio by Red Granite, the production house co-owned by Prime Minister Najib Razak’s step son Riza Aziz which financed the movie ‘The Wolf of Wall Street’ in which DiCaprio played the leading role.
Red Granite apparently gave DiCaprio the Oscar as a thank-you gift after work on ‘The Wolf of Wall Street’ wrapped up. He voluntarily handed the statue over prior to the latest filing, according to a report by Hollywood entertainment site Vanity Fair.
Read more here: https://www.themalaysianinsight.com/s/5213/
