Wednesday, July 20, 2016

U.S. Maps 1MDB Fraud Trail From Kuala Lumpur to Hollywood

More than $3.5 billion traveled a trail of fraud from Malaysia through a web of shell companies, with some fueling a spending binge on Monet paintings and luxury real estate and at least $700 million flowing back into accounts controlled by Malaysia’s prime minister.

Some of the money was handled by international banks including Goldman Sachs Group Inc., JPMorgan Chase & Co., Standard Chartered Plc and Deutsche Bank AG. A chunk of it funded a Hollywood blockbuster, “The Wolf of Wall Street.” More than $13 million of it was wired to an account at a Las Vegas casino by a stepson of Malaysia’s prime minister who gambled with an unidentified actor whose description matches that of Leonardo DiCaprio.

 It’s all laid out in a dozen filings Wednesday by U.S. prosecutors who detailed an alleged scheme of international money laundering and misappropriation stretching from 2009 to 2015. The Justice Department is seeking to seize more than $1 billion worth of assets it says went through U.S. banks from Malaysian development fund 1Malaysia Development Berhad, known as 1MDB, and was ultimately used to illegally acquire assets.

The U.S. complaints lays the groundwork for tension with Malaysia, a longtime ally on issues including counterterrorism and trade. Prosecutors refer to a top Malaysian official who controlled accounts that received hundreds of millions of dollars. The official isn’t accused of wrongdoing.

The anonymous description lines up with that of Prime Minister Najib Razak, who until a few months ago served as the chairman of 1MDB’s advisory board.

Read more on Bloomberg

Related news :

Swiss widen corruption investigation into Malaysia's 1MDB fund

How Malaysia's 1MDB Fund Scandal Reaches Around the World

Najib Razak 1MDB Corruption Scandal - US Investigating Goldman Sachs


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