Day: July 20, 2016

By LOUISE STORY
New York Times
JULY 20, 2016

The United States government plans to move Wednesday to seize more than $1 billion in assets purchased with money that it believes was stolen from a Malaysian sovereign wealth fund by people close to the country’s embattled prime minister.

Hidden in the United States in real estate, art and other luxury goods, the money was embezzled from the fund and moved around the world using secretive shell companies that masked its trail, a person familiar with the Justice Department plan said.

The $1 billion that prosecutors will allege was laundered in the United States is but a portion of the billions that international investigators suspect was siphoned off by high-level officials at the fund and their associates. The fund — called 1Malaysia Development Berhad, or 1MDB — is overseen by the prime minister, Najib Razak, and has become a focus of rising popular discontent with Mr. Najib’s government amid several investigations at home and abroad.

The forfeiture complaint, to be issued by a unit known as the Kleptocracy Asset Recovery Initiative, will be the largest such case brought by the Justice Department. The United States is among several governments, including Malaysia, Singapore and Switzerland, that have investigated the fund. Continue reading “U.S. Targets $1 Billion in Assets in Malaysian Embezzlement Case”

Did the Cabinet this morning discuss the breaking news at about noon Malaysian time of the Wall Street Journal (WSJ) report that the US authorities are set to seize assets linked to 1MDB “in the largest asset seizure in US history” in the war against global corruption?

This seizure, under the US Kleptocracy Asset Recovery Initiative, is expected to exceed the previous record of US$850 million in assets which the US authorities sought to seize from three telecom firms in an unrelated case.

Citing sources, WSJ said the Justice Department’s Kleptocracy Asset Recovery Initiative is expected to file civil lawsuits seeking to seize the assets as soon as Wednesday morning in the US.

It claimed the seizure will involve properties and other assets bought with “money allegedly misappropriated from the Malaysian fund.” Continue reading “Did the Cabinet this morning discuss the breaking news of the WSJ report that the US authorities are set to seize assets linked to 1MDB “in the largest asset seizure in US history” in the war against global corruption?”

Shamim Adam and Laurence Arnold
Bloomberg
July 20, 2016

Malaysia’s state-owned investment fund, 1MDB, was supposed to attract foreign investment. Instead, it has spurred criminal and regulatory investigations around the world that have cast an unflattering spotlight on financial deal-making, election spending and political patronage under Prime Minister Najib Razak. A Malaysian parliamentary committee identified at least $4.2 billion in irregular transactions.

1. What is 1MDB?

It’s a government investment company — full name, 1Malaysia Development Berhad — that took shape in 2009 under Najib, who went on to lead its advisory board. Its early initiatives included buying privately owned power plants and planning a new financial district in Kuala Lumpur. The fund proved better at borrowing — it accumulated $12 billion in debt — than at luring large-scale investment.

2. What’s the issue?

Investigators have been trying to trace whether money might have flowed through and around 1MDB and illegally into personal accounts. Some of the money is alleged to have ended up with Najib and his family. That includes $681 million that landed in the prime minister’s personal bank account, according to the Wall Street Journal. Najib has denied wrongdoing, and Malaysia’s attorney general said the $681 million was a donation from the Saudi Arabian royal family, much of which was returned. Another $700 million in 1MDB funds meant for a joint venture with a company known as PetroSaudi International was found to have landed in an unrelated offshore account. Continue reading “QuickTake Q&A: Malaysia’s 1MDB Fund Spawns Worldwide Probes”

By BRADLEY HOPE
Wall Street Journal
July 20, 2016

Authorities are expected to file civil lawsuits as soon as Wednesday

Federal prosecutors are poised to launch one of the largest asset seizures in U.S. history as they step up their investigation into billions of dollars siphoned away from a Malaysian government investment fund, according to people familiar with the matter.

Authorities are expected to file civil lawsuits as soon as Wednesday morning seeking to seize assets, which are expected to include properties and other assets purchased with money allegedly misappropriated from the Malaysian fund, according to people familiar with the matter.

The Wall Street Journal has reported that people linked to the fund have invested millions of dollars in real estate and businesses in the U.S.

Agents from the Federal Bureau of Investigation’s international corruption unit have also been conducting a wide-ranging criminal investigation into people and institutions connected with 1Malaysia Development Bhd., known as 1MDB, a sovereign-wealth fund set up by Prime Minister Najib Razak in 2009 to drive the country’s economy. Continue reading “U.S. Readies Push to Seize Assets Tied to Malaysian Fund 1MDB”