The Justice Department has secured a court order forfeiting a luxury New York City condominium and rental proceeds tied to the 1MDB corruption and money laundering investigation, officials announced.
The civil forfeiture action, filed in the U.S. District Court for the Central District of California, sought recovery of more than $6 million in assets allegedly connected to an international conspiracy to launder funds misappropriated from 1Malaysia Development Berhad, a Malaysian sovereign wealth fund established to promote economic development and foreign investment in the country.
According to Justice Department civil forfeiture complaints, billions of dollars were misappropriated from 1MDB between 2009 and 2015 by high-level fund officials and their associates, including Malaysian financier Low Taek Jho — widely known as Jho Low — through an alleged criminal scheme involving international money laundering and embezzlement. The department alleged that some of those funds were used to purchase a luxury Manhattan condominium for May Ling Catherine Tan, described as a personal assistant to Low, who also retained rental income from the property. Under the forfeiture order, both the unit and the rental proceeds held by Tan will be forfeited to the U.S. government.
The Justice Department said the alleged misuse of 1MDB funds extended beyond real estate. According to court filings, misappropriated money was spent on luxury homes and properties in Beverly Hills, New York and London; a 300-foot superyacht; and fine art by Monet and Van Gogh. Prosecutors also alleged that funds were invested in a boutique Beverly Hills hotel, the production company behind the film “The Wolf of Wall Street,” the redevelopment of Manhattan’s Park Lane Hotel, and shares in EMI, the large private music-rights company.
The case is being prosecuted by Trial Attorney Barbara Levy of the Justice Department’s Money Laundering, Narcotics and Forfeiture Section, with assistance from the U.S. Attorney’s Office for the Central District of California, the department’s Office of International Affairs and the U.S. Marshals. The FBI’s International Corruption Squad in New York is leading the investigation, the department said.
Justice Department officials said the investigation and related litigation have involved cooperation from authorities in Malaysia, the United Kingdom, Singapore, Switzerland, Luxembourg, Indonesia, Latvia, France and other jurisdictions.
Authorities are asking anyone with information about possible foreign corruption proceeds located in or laundered through the United States to contact federal law enforcement or submit a tip through tips.fbi.gov.
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