Tag Archives: 1MDB

Malaysian police say 1MDB fugitive Low seeking to buy Cyprus properties

Malaysian police say 1MDB fugitive Low seeking to buy Cyprus propertiesMalaysian police said on Wednesday that fugitive financier Low Taek Jho, accused of a multi-billion dollar theft at state fund 1Malaysia Development Berhad (1MDB), is attempting to purchase properties in Cyprus under a different name. Low, also known as Jho Low, has been charged in Malaysia and the United States over the alleged theft of $ 4.5 billion from 1MDB, set up by former Malaysian Prime Minister Najib Razak. Information on Low’s efforts to buy real estate in Cyprus was gathered after a series arrests, Malaysia’s police chief Abdul Hamid Bador told a news conference, a video of which was posted on the police’s official Facebook page.



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Chris Christie Among Lawyers Making $15 Million in 1MDB Pact

Chris Christie Among Lawyers Making $  15 Million in 1MDB Pact(Bloomberg) — The biggest recovery ever from an American anti-corruption crackdown is proving lucrative for former New Jersey Governor Chris Christie.A major deal struck by the U.S. for fugitive financier Jho Low to give up almost $ 1 billion in assets allegedly stolen from a Malaysian investment fund comes with a provision to pay his lawyers. As part of the 1MDB settlement, the Justice Department allowed for $ 15 million to be paid to a group advising Jho Low, including the law firm Christie set up after two terms as New Jersey’s governor.Those proceeds will come from Jho Low’s stake in EMI Music Publishing, which has grown to about $ 415 million. That investment ballooned after he initially put in a little more than $ 100 million stolen from 1MDB, according to prosecutors. The two sides agreed to the provision to allow the lawyers to extract fees from Low, whose assets and accounts have been seized or monitored by authorities across the world.“We were pleased to help negotiate this historic resolution in order to preserve the tremendous value of assets involved,” Christie said in a statement after the Justice Department announced the settlement agreement on Wednesday. It still needs approval from a federal judge.Christie, who ran for the Republican presidential nomination in 2016 before dropping out and endorsing Donald Trump, set up his own law firm last year, the Christie Law Firm LLC. The other firms that will receive proceeds of the 1MDB deal for legal expenses are Kobre & Kim LLP and Lowenstein Sandler LLP.The agreement comes even before the criminal charges against Low have been resolved. In the settlement, the Justice Department cautioned that the released funds should be used only for the Low family’s legal fees and costs related to the lawsuits, and can’t be routed back to Low or his family.The cases were resolved in a “collaborative and fair way that includes payment of our legal fees,” said Robin Rathmell, a lawyer at Kobre & Kim.(Updates with lawyer’s comment in last paragraph.)To contact the reporter on this story: Sridhar Natarajan in New York at snatarajan15@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Daniel Taub, David S. JoachimFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.



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UPDATE 2-Malaysia fines Najib's brother, others for receiving 1MDB funds

UPDATE 2-Malaysia fines Najib's brother, others for receiving 1MDB fundsMalaysia has fined the brother of former premier Najib Razak and other people and companies for allegedly receiving money from state fund 1MDB, the country’s anti-graft chief said on Monday. Malaysian and U.S. investigators say about $ 4.5 billion was misappropriated from now-defunct state investment fund 1Malaysia Development Berhad (1MDB), set up in 2009 by Najib.



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Ex-Malaysia PM Najib Razak Faces Court for Biggest 1MDB Corruption Trial

Ex-Malaysia PM Najib Razak Faces Court for Biggest 1MDB Corruption Trial(Bloomberg) — Malaysian prosecutors will seek to prove that Najib Razak acted together with fugitive financier Jho Low in their alleged roles in 1MDB, as the former premier faces his biggest trial linked to the troubled state fund.“In truth, Jho Low was the accused’s mirror image,” prosecutor Gopal Sri Ram said in his opening statement in the Kuala Lumpur court. “The prosecution will establish facts which will give rise to an irresistible inference that Jho Low and the accused acted as one at all material times.”The 25 charges Najib faces revolve around 1MDB’s multibillion-dollar bond sales and acquisitions. That includes accusations he received 2.08 billion ringgit ($ 495 million) of bribes related to a letter of government support for $ 3 billion of 1MDB bonds in 2013, as well as allegations he accepted 49.9 million ringgit linked to a $ 975 million loan facility from Deutsche Bank AG. He has pleaded not guilty to all the charges. Jho Low, or Low Taek Jho, has denied any wrongdoing in response to charges against him in the U.S. and Malaysia.The start to the proceeding was postponed many times as it clashed with Najib’s first 1MDB trial, which involved local transactions by the state fund’s former unit. The delays point to the massive task Prime Minister Mahathir Mohamad has ahead of him in getting to the bottom of the 1MDB scandal. Since wresting power from Najib last year, the prime minister has prioritized investigations into the scandal, as well as recouping funds believed to be lost through the scandal-ridden fund.Goldman Sachs Group Inc.’s lawyer is also present in court to hold a watching brief. Malaysia has charged three of the bank’s units as well as 17 of its current and former directors over $ 6.5 billion of bond in bonds the bank arranged for 1MDB in 2012 and 2013.Multiple ChargesHere are a few of the charges Najib faces today:He allegedly received 90.9 million ringgit linked to 1MDB deals, including:Joint venture with PetroSaudi International Ltd. costing $ 1 billion and subsequent 1 billion ringgit investment in the JV10.6 billion ringgit bid for Tanjong Energy Holdings Sdn.2.75 billion ringgit purchase of Syarikat Mastika Lagenda Sdn. sharesHe allegedly received 60.6 million ringgit gratification for approving a state guarantee on 5 billion ringgit of Islamic notes sold by Terengganu Investment Authority Bhd., the precursor to 1MDBHe allegedly received funds from illegal activities involving a total of 2.08 billion ringgit from Tanore Finance Corp.’s account at Falcon Private Bank in SingaporeHe’s accused of money laundering in relation to a total of 2.2 billion ringgit of fund transfers to Tanore’s account at FalconHe allegedly used funds from illegal activities involving 20 million ringgit paid to United Malays National Organisation, the largest opposition party, as well as 100,000 ringgit to UMNO’s Batu Kawan divisionHe allegedly spent illicit funds, including 303,000 ringgit sent to Semarak Konsortium Satu Sdn., 2 million ringgit to ORB Solutions Sdn., and 246,000 ringgit sent to Lim Soon Peng(Updates with comments from the prosecutor throughout.)\–With assistance from Chloe Whiteaker and Kristine Servando.To contact the reporters on this story: Anisah Shukry in Kuala Lumpur at ashukry2@bloomberg.net;Hadi Azmi in Kuala Lumpur at klnews@bloomberg.netTo contact the editors responsible for this story: Yudith Ho at yho35@bloomberg.net, Ruth PollardFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.



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Goldman Asked to Defend Role in 1MDB Deals by Malaysia Regulator

Goldman Asked to Defend Role in 1MDB Deals by Malaysia RegulatorThe Securities Commission sent a show-cause letter to the bank in December, asking Goldman to explain why such action shouldn’t be taken against the bank, the regulator said in a Friday statement. The commission has the power to impose administrative sanctions and undertake civil enforcement proceedings as well as criminal prosecutions, the statement added. A spokesman for Goldman Sachs declined to comment.



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Toppled Malaysian leader's 1MDB trial delayed

Toppled Malaysian leader's 1MDB trial delayedFormer Malaysian premier Najib Razak’s trial over a massive financial scandal that contributed to his government’s downfall was postponed Monday, in a blow to slow-moving efforts to bring the disgraced politician to justice. Najib had been due to go on trial Tuesday for the first time over allegations linked to his involvement in the looting of Malaysian sovereign wealth fund 1MDB in a fraud that reverberated around the world. Billions of dollars were allegedly stolen by Najib and his cronies from 1MDB, which was set up to help develop Malaysia’s economy, and spent on everything from high-end real estate to expensive artworks.



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Najib Asks ‘Why Be Ashamed?’ Before First Trial on 1MDB Charges

Najib Asks ‘Why Be Ashamed?’ Before First Trial on 1MDB ChargesCrisp, tailored suits have recently made way for hoodies and khakis in photos of Najib on social media, while selfies with world leaders such as Barack Obama and the Saudi king are now replaced by those with members of biker clubs. Najib posted a video of a car making a swift turn to criticize flip flops by the administration of Prime Minister Mahathir Mohamad, and shared the phone numbers of two government offices to encourage ministers to speak to one another.



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Humbled Goldman Sachs still faces questions on 1MDB

Humbled Goldman Sachs still faces questions on 1MDBGoldman Sachs’s decision to potentially cut bonuses for top executives over the 1MDB scandal reflects an acknowledgement at shareholder and public outrage over the debacle. The prestigious investment bank announced last week that it could withhold millions of dollars in bonuses to former Chief Executive Lloyd Blankfein and two other retired executives depending on the outcome of ongoing probes into the Malaysian fund. Beyond the bonuses, Goldman also said it could claw back compensation from current chief executive David Solomon and two other current senior executives, president John Waldron and chief financial officer Stephen Scherr.



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Goldman Sachs CEO defends bank in 1MDB scandal

Goldman Sachs CEO defends bank in 1MDB scandalThe head of Goldman Sachs defended the investment bank’s handling of the scandal-plagued Malaysian fund 1MDB on Friday, saying much criticism of the financial giant was unfair. “I cannot stress enough how integrity is a cornerstone of our culture,” newly-installed Chief Executive David Solomon said in a year-end message to employees. Goldman helped 1MDB to issue $ 6.5 billion of bonds but Kuala Lumpur accuses the bank and its former employees of misappropriating $ 2.7 billion during the process.



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Malaysia charges Goldman as pressure mounts over 1MDB scandal

Malaysia charges Goldman as pressure mounts over 1MDB scandalMalaysia filed criminal charges Monday against Goldman Sachs and two of its former employees over the alleged theft of billions of dollars, heaping fresh pressure on the Wall Street titan over the 1MDB scandal. Goldman subsidiaries and ex-bankers Tim Leissner and Ng Chong Hwa are accused of misappropriating $ 2.7 billion, bribing officials and giving false statements in relation to bond issues they arranged for state fund 1MDB. Allegations that huge sums were looted from the investment vehicle and used to buy everything from yachts to artwork, in a fraud that involved former Malaysian leader Najib Razak, contributed to the last government’s shock defeat at May elections.



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