Malaysia meets U.S. ambassador over DOJ’s 1MDB suit

The 1MDB fund, started in 2009 ostensibly for national development purposes by Malaysian Prime Minister Najib Razak soon after he came to power, is being investigated in at least six other jurisdictions, including Singapore, Switzerland, Hong Kong and, of course, Malaysia.

It sounds like a pitch for The Wolf Of Wall Street 2: Yesterday, the U.S. Department of Justice filed a series of lawsuits alleging that Malaysian officials had misappropriated more than $3.5 billion from 1Malaysia Development Bhd., a fund created to invest in the Malaysian economy.

The US filing accuses an individual it calls “Malaysian Official 1” – an apparent thinly veiled reference to Najib – of taking huge sums, along with Najib’s stepson, a close family associate and other figures.

Attorney General Lynch was joined in the announcement by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, FBI Deputy Director Andrew G. McCabe and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI).

The diverted funds paid for luxury properties in NY and California, a $35 million jet, art by Vincent Van Gogh and Claude Monet and helped finance the Hollywood film, The Wolf of Wall Street, according to federal government complaints that demand the recovery and forfeiture of the ill-gotten assets.

It marked the first time authorities in the city-state revealed details of its investigations.

The US Justice Department filing accused Low of laundering hundreds of millions of dollars in diverted 1MDB money to fund US luxury purchases.

The targeted U.S. assets also include royalties from the 2013 financial crime caper The Wolf of Wall Street starring Leonardo DiCaprio. Najib has consistently denied any wrongdoing.

The US seizure would be the largest yet under Washington’s 2010 Kleptocracy Asset Recovery Initiative targeting ill-gotten gains parked in US assets by foreign leaders. He closely controlled it in his concurrent role as finance minister.

Apandi’s office, after investigating the $681 million bank deposit, announced in January that the funds were a donation from the Saudi royal family.

Officials at the Malaysian prime minister’s office said they were yet to read the report.

Najib has moved to suppress information, neuter Malaysian investigations, and oust officials questioning 1MDB’s activities.

“However, Malaysia is ready to fully cooperate with any lawful investigation of Malaysian companies in accordance with global protocols, provided that Malaysia and the United States work together on this matter”, said the Foreign Affairs Ministry in a statement sent to Malay Mail Online.

“As the Prime Minister has always maintained, if any wrongdoing is proven, the law will be enforced without exception”, the spokesman said. The complaints also allege that the co-conspirators misappropriated more than $1.3 billion in funds raised through two bond offerings in 2012 and $1.2 billion following another bond offering in 2013.

Najib already has admitted receiving $681 million in past deposits to his personal accounts after they were exposed a year ago by the Wall Street Journal.

Political analysts say only a revolt within the ruling United Malays National Organisation (UMNO) appears able to dislodge Najib.