US strikes deal to recover $1bn from fugitive 1MDB financier
The US Justice Department has struck record a deal to recover $1bn (£773m) of funds allegedly looted from a Malaysian state investment fund by fugitive financier Jho Low.
US authorities estimate that around $4.5bn of funds were siphoned from 1Malaysian Development Berhad (1MDB), which was founded in 2009 by then Malaysian prime minister Najib Razak.
Read more: Malaysian authorities say they know where wanted 1MDB financier Jho Low is
Since 2016, the Justice Department has filed civil lawsuits seeking to seize around $1.7bn of assets allegedly bought with stolen 1MDB funds, in the largest ever case in its anti-kleptocracy programme.
Low, who has consistently denied wrongdoing, is facing charges in the US and Malaysia over his role in the 1MDB scandal. His whereabouts are unknown.
The financier agreed to give up a private jet, high-end real estate in London, New York and Beverly Hills, as well as other assets totalling $700m.
Low had already forfeited a $126m yacht and $140m in other assets. If approved, the deal will be the largest ever civil forfeiture for a US anti-corruption probe.
“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, according to Reuters.
The deal reached does not include any admission of guilt or wrongdoing and is not linked to any criminal action against Low.
In a statement issued on his behalf, Low said: “I am very pleased to confirm that a landmark comprehensive, global settlement has been reached with the United States government.”
The proposed settlement, which was filed in a California court yesterday, needs to be approved by a judge.
Read more: Malaysia charges 17 current and former Goldman Sachs staff in 1MDB fund fraud case
The two parties have also agreed to cooperate in settling suits tied to other assets, including diamond jewellery and paintings by Picasso and Van Gogh, the court filing said.
1MDB is the subject of corruption and money laundering investigations in at least six countries.
Main image credit: Getty