US charges widen the net, deepen the intrigue on 1MDB scam
On November 1, the United States Department of Justice (DoJ) announced it had lodged criminal charges against three suspects in the 1Malaysia Development Berhad (1MDB) fraud case, considered by observers among the largest financial scams in modern history.
The three accused include fugitive Malaysian financier Low Taek Jho, former Goldman Sachs banker Ng Chong Hwa, and the same investment bank’s ex-managing director Tim Leissner, who headed the financial institution’s Southeast Asia operations.
A three-count indictment was unsealed against Low and Ng in the Eastern District of New York’s federal court on charges of conspiring to launder about US$6 billion embezzled from 1MDB and violate the Foreign Corrupt Practices Act by paying bribes to both Malaysian and Emirati officials.
The DoJ’s investigation for the indictments involved dozens of individuals, institutions and corporate entities spanning Malaysia, Singapore, Hong Kong, the Seychelles, France, Switzerland, Luxembourg, the United Kingdom, United Arab Emirates and US.
The three named defendants are the first to face criminal charges lodged by the DoJ for their roles as architects, enablers and organizers of the multi-billion dollar scam. Low, also known as Jho Low, is believed to be laying low in China, according to reports.
Several Malaysian government officials, including ex-premier Najib Razak, allegedly collaborated with two executives at the UAE’s state-owned International Petroleum Investment Company (IPAC) to syphon as much as US$6 billion from 1MDB.
Before being charged with embezzling US$1.7 billion from 1MDB, the 37-year-old Low made a name for himself as a globetrotting playboy posing with stars like Paris Hilton, Miranda Kerr, Elva Hsiao and Leonardo DiCaprio.
http://www.atimes.com/article/us-charges-widen-the-net-deepen-the-intrigue-on-1mdb-scam/