https://www.justice.

gov/opa/pr/us-seeks-recover-approximately-38-
million-allegedly-obtained-corruption-involving-malaysian

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE

Friday, February 22, 2019
U.S. Seeks to Recover Approximately $38 Million Allegedly
Obtained from Corruption Involving Malaysian Sovereign
Wealth Fund

The Justice Department announced today the filing of civil forfeiture complaints
seeking the forfeiture and recovery of approximately $38 million in assets
allegedly associated with an international conspiracy to launder funds
misappropriated from 1Malaysia Development Berhad (1MDB), a Malaysian
sovereign wealth fund. Combined with civil forfeiture complaints filed in July
2016 seeking more than $1 billion in assets, and civil forfeiture complaints filed
in June 2017 seeking approximately $540 million in assets, this case represents
the largest action brought under the Department’s Kleptocracy Asset Recovery
Initiative. Assets now subject to forfeiture in this case total approximately $1.7
billion.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s
Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of
California, Assistant Director Robert Johnson of the FBI’s Criminal Investigative
Division and Chief Don Fort of the IRS Criminal Investigation (IRS-CI) made the
announcement.
According to the complaints, from 2009 through 2015, more than $4.5 billion in
funds belonging to 1MDB were allegedly misappropriated by high-level officials
of 1MDB and their associates. 1MDB was created by the government of Malaysia
to promote economic development in Malaysia through global partnerships and
foreign direct investment, and its funds were intended to be used for improving
the well-being of the Malaysian people.
“The complaints filed today demonstrate the Department of Justice’s steadfast
commitment to recovering assets traceable to the alleged multi-billion dollar
looting of Malaysia’s sovereign wealth fund,” said Assistant Attorney General
Benczkowski. “The Criminal Division and our law enforcement partners are
committed to protecting the U.S. financial system and ensuring that the proceeds
of overseas corruption and other criminal conduct find no safe haven here.”
“These new lawsuits target assets collected by corrupt officials and their
associates through a massive scheme that stole billions of dollars from the people
of Malaysia and laundered the proceeds across the world,” said U.S. Attorney

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Nick Hanna. “Through a series of cases filed over the past three years, we have
pursued a wide variety of assets purchased with stolen 1MDB funds, and so far we
have successfully forfeited hundreds of millions of dollars. Collectively, these
cases send a strong message that the United States cannot be used as a safe haven
or a conduit for money pilfered by corrupt officials.”
“Today’s announcement is a testament to the FBI’s relentless effort to investigate
kleptocracy and hold corrupt foreign officials accountable,” said FBI Assistant
Director Johnson. “At the onset of this investigation, we promised to work with
our foreign and domestic partners to identify and return stolen assets to the
Malaysian people. This filing demonstrates our unwavering commitment to keep
that promise. We want to thank our partners, both domestic and foreign, for
their hard work in helping to bring justice for the Malaysian people. The recovery
of these assets is another step in that direction.”
“The investigation into the misappropriation of the 1MDB funds represents a
model for international cooperation in significant cross-border money laundering
matters, and sends a message that criminals cannot evade law enforcement
authorities simply by laundering money through multiple jurisdictions and
through a web of shell corporations,” said IRS-CI Chief Fort. “We are proud of
the investigative work on this case and the work of our fellow law enforcement
agencies in this and other complex financial investigations.”
As alleged in the complaints, the members of the conspiracy – which included
officials at 1MDB, their relatives and other associates – diverted more than $4.5
billion in 1MDB funds. Using fraudulent documents and representations, the co-
conspirators allegedly laundered the funds through a series of complex
transactions and shell companies with bank accounts located in the U.S. and
abroad. These transactions allegedly served to conceal the origin, source and
ownership of the funds, and ultimately passed through U.S. financial institutions
to then be used to acquire and invest in assets located in the U.S. and overseas.
As alleged in the earlier complaints, in 2009, 1MDB officials and their associates
embezzled approximately $1 billion that was supposed to be invested to exploit
energy concessions purportedly owned by a foreign partner. Instead, the funds
were allegedly transferred through shell companies and were used to acquire a
number of assets, as set forth in the complaints. The complaints also allege that
the co-conspirators misappropriated close to $1.4 billion in funds raised through
bond offerings in 2012, and more than $1.2 billion following another bond
offering in 2013. The complaints also allege that in 2014, the co-conspirators
misappropriated approximately $850 million in 1MDB funds under the guise of

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repurchasing certain options that had been given in connection with a guarantee
of the 2012 bonds.The complaints filed today in the Central District of California
identify additional assets traceable to the 2012 and 2013 bond offerings. These
assets include luxury real estate in London, proceeds from the sale of luxury real
estate in New York City, and converted equity in a facilities management
company headquartered in Kentucky.
The FBI’s International Corruption Squads in New York City and Los Angeles and
the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial
Attorneys Kyle R. Freeny, Jonathan Baum, Barbara Levy and Joshua L. Sohn of
the Criminal Division’s Money Laundering and Asset Recovery Section and
Assistant U.S. Attorneys John Kucera and Michael R. Sew Hoy of the Central
District of California are prosecuting the case. The Criminal Division’s Office of
International Affairs is providing substantial assistance.
The Department also appreciates the significant assistance provided by the
Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the
Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of
Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of
the Attorney General and the Federal Office of Justice of Switzerland, the judicial
investigating authority of the Grand Duchy of Luxembourg, and the Criminal
Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated
prosecutors in the Criminal Division’s Money Laundering and Asset Recovery
Section, in partnership with federal law enforcement agencies, and often with
U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and,
where appropriate, to use those recovered assets to benefit the people harmed by
these acts of corruption and abuse of office. In 2015, the FBI formed
International Corruption Squads across the country to address national and
international implications of foreign corruption. Individuals with information
about possible proceeds of foreign corruption located in or laundered through the
U.S. should contact federal law enforcement or send an email to
kleptocracy@usdoj.gov (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was
involved in or represents the proceeds of a crime. These allegations are not
proven until a court awards judgment in favor of the United States.
Attachment(s):
Download Proceeds of Sale of New York Real Estate
Download London Property in the Name of Red Mountain Global Ltd
Download Converted Equity in a Facilities Management Company
Headquartered in Kentucky

Component(s):
Criminal Division

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Press Release Number:
19-151 Updated February 22, 2019