The Justice Department has successfully recovered over $6 million in additional funds linked to the 1MDB Malaysian sovereign wealth fund scheme, announcing the forfeiture of a luxury New York apartment and associated rental income. This action resolves a civil forfeiture case in the U.S. District Court for the Central District of California, targeting assets connected to an international money laundering conspiracy.
The civil forfeiture complaints allege that billions of dollars were misappropriated from 1MDB between 2009 and 2015 by high-level officials, their associates, and Low Taek Jho, also known as Jho Low. A significant portion of these illicit funds was used to purchase the New York condominium for the benefit of May Ling Catherine Tan, Low's personal assistant, who also profited from rental proceeds.
1MDB was established by the Malaysian government to foster economic development, with its funds intended for the well-being of the Malaysian people. Instead, Low and his co-conspirators allegedly diverted these funds for extravagant purchases, including luxury properties in Beverly Hills, New York, and London, a 300-foot superyacht, and valuable art. The misappropriated money also funded various business investments, such as a boutique hotel, a movie production company, and shares in a major music-rights holder.
Trial Attorney Barbara Levy of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section is prosecuting the civil forfeiture case, with the FBI’s International Corruption Squad in New York leading the investigation. The Justice Department received significant assistance from numerous international authorities, including those in Malaysia, the UK, Singapore, and Switzerland, highlighting the global scope of the investigation into this complex financial crime.