The United States Department of Justice (DOJ) has finalized an agreement with Low Taek Jho, widely known as Jho Low, and his family, alongside various trust entities he established, collectively referred to as the “Low Parties.” This settlement resolves two significant civil forfeiture cases linked to assets allegedly acquired through funds embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s sovereign wealth fund.
Allegations and Background
The DOJ had previously filed civil forfeiture complaints against various assets owned by Low and his family. These assets were purportedly obtained using funds misappropriated from 1MDB, a fund established by the Malaysian government in 2009 to foster economic development through global investments and partnerships. The complaints detail a complex criminal conspiracy, spanning from 2009 to 2015, in which over $4.5 billion was allegedly embezzled by senior 1MDB officials and their associates, including Jho Low. The embezzled funds were laundered through international channels and utilized for bribery.
Settlement Details Involving Jho Low
Under the terms of the agreement, the Low Parties will cooperate with authorities to facilitate the transfer of assets linked to 1MDB funds to Malaysia. These assets are located in Hong Kong, Switzerland, and Singapore. The DOJ will work with foreign partners to oversee the liquidation of these assets and ensure their return to Malaysia.
The settlement includes the forfeiture of a luxury apartment in Paris and artwork by Andy Warhol and Claude Monet, collectively valued at approximately $35 million. Additionally, the agreement covers real estate and cash in bank accounts worth about $67 million located in Hong Kong, Switzerland, and Singapore.
Legal and Financial Provisions
As part of the settlement, the United States will release $3.5 million to the trust entities to cover legal fees and costs associated with the properties. Importantly, these funds cannot be returned to Low or his family. Prior to this settlement, the United States had already returned or facilitated the return of over $1.4 billion in assets related to the 1MDB scandal to Malaysia.
Ongoing Legal Actions
This agreement does not absolve any individuals or entities from existing or potential criminal charges. Jho Low faces charges in the Eastern District of New York for allegedly laundering billions of dollars embezzled from 1MDB and for violating the Foreign Corrupt Practices Act by allegedly bribing Malaysian and Emirati officials. Additionally, he faces charges in the District of Columbia for allegedly making and concealing illegal campaign contributions during the 2012 U.S. presidential election.
Investigation and Prosecution
The FBI’s International Corruption Squads in New York City and Los Angeles, along with the IRS Criminal Investigation, are spearheading the investigation. The case is being prosecuted by Trial Attorneys Barbara Levy, Sean Fern, Jonathan Baum, and Joshua Sohn of the DOJ’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Jonathan Galatzan from the Central District of California. The investigation was significantly bolstered by support from the DOJ’s Office of International Affairs and MLARS’ Program Management Staff.
International Cooperation
The DOJ has acknowledged the significant assistance provided by international partners, including Malaysia’s Attorney General’s Chambers, Royal Malaysia Police, Malaysian Anti-Corruption Commission, Singapore’s Attorney-General’s Chambers and Police Force-Commercial Affairs Department, Switzerland’s Office of the Attorney General and Federal Office of Justice, and French authorities.
Kleptocracy Asset Recovery Initiative
This case is part of the Kleptocracy Asset Recovery Initiative, which aims to forfeit the proceeds of foreign official corruption. The initiative is spearheaded by MLARS in partnership with federal law enforcement agencies and U.S. Attorneys’ Offices, focusing on recovering assets stolen through corruption and returning them to the affected nations.
The resolution of these civil forfeiture cases marks a significant step in the ongoing effort to address the extensive corruption linked to 1MDB and underscores the DOJ’s commitment to international cooperation in combating financial crimes.
