31st October, 2019
The U.S. Justice Department on Wednesday struck a deal to recoup $1 billion in funds allegedly looted from a Malaysian state investment fund by fugitive financier Jho Low, in a record capture for a U.S. anti-corruption probe.
U.S. authorities say about $4.5 billion were siphoned from 1Malaysia Development Berhad (1MDB), founded in 2009 by then Malaysian prime minister Najib Razak.
Since 2016, the Justice Department, in the biggest ever case in its anti-kleptocracy program, has filed civil lawsuits seeking to seize about $1.7 billion in assets allegedly bought with stolen 1MDB funds.
Low, who called the agreement “historic” in a statement issued on his behalf, faces charges in both the United States and Malaysia over his central role in the scandal.
Low agreed to give up a private jet, high-end real estate in Beverly Hills, New York, and London and other assets totaling $700 million, the Justice Department said in a statement and court document filed on Wednesday.
That’s on top of a $126-million yacht and $140 million in other assets previously forfeited. If approved, the settlement will mark the largest civil forfeiture ever concluded by the Justice Department, it said.
“The message, in this case, is simple: the United States is not a safe haven for pilfered funds,” said U.S. Attorney Nicola T. Hanna of the Central District of California. The deal does not include an admission of guilt or wrongdoing and is not tied to the criminal action against Low. “I am very pleased to confirm that a landmark comprehensive, the global settlement has been reached with the United States government,” Low said in the statement.
The settlement also includes assets in the United Kingdom and Switzerland, as well as funds from the sale of Low’s stake in the EMI music publishing group.