Friday, September 24, 2021

U.S. to return $200m stolen funds to Malaysia – Sources

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U.S. authorities will this month return 200 million dollars stolen from Malaysia’s state fund 1MDB, two sources with direct knowledge of the matter said on Friday.

It includes money from a stake in a luxury New York hotel and from a Hollywood movie producer.

The U.S. Department of Justice, in the biggest ever case in its anti-kleptocracy programme, is pursuing billions of dollars it says were misappropriated from 1MDB, a state fund founded by former Malaysian Prime Minister Najib Razak.

Prime Minister, Mahathir Mohamad, who defeated Najib in a shock election result in 2018, is working with at least six countries to recover about 4.5 billion dollars it says was stolen from 1MDB.

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The tranche of money being returned by the U.S. includes 140 million dollars from the sale of a stake in New York’s Park Lane Hotel, after it was given up by fugitive financier Low Taek Jho, known as Jho Low, the two sources said.

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Jho Low, the alleged mastermind behind the looting of 1MDB, is wanted by the Malaysian authorities to face criminal charges.

Low, whose whereabouts are unknown, has denied wrongdoing.

The sources said the remaining money was the 60 million dollars from Red Granite Pictures, co-founded by Najib’s stepson Riza Aziz.

This was agreed in March 2018 to pay the U.S. government to settle a civil lawsuit over allegations 1MDB money, was used to finance the film “Wolf of Wall Street”.

The U.S. Department of Justice did not immediately respond to a Reuters’ request for comment.

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Separately, Singapore police said on Friday that 26 million dollars in 1MDB-related funds was in the process of being returned to Malaysia, the latest tranche in $176 million in cash and properties seized by the city-state relating to the scandal.

Malaysia recouped a further 126 million dollars in 2018 by selling the superyacht Equanimity, which was bought by Jho Low for 250 million dollars with funds allegedly stolen from 1MDB.

Malaysia has also filed criminal charges against Goldman Sachs for its role in raising money for 1MDB.
The investment bank says it conducted correct due diligence.

Prosecutors in the U.S. Attorney’s Office in Brooklyn have said a former Goldman Sachs employee has pleaded guilty to conspiracy to launder money.


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