Business

US reaches settlement to recover over RM212mil in 1MDB case

TheMole
Written by TheMole

May 7 2020

The United States has reached a settlement to recover more than US$49mil (RM212mil) in the 1Malaysia Development Bhd (1MDB) case.

Its Department of Justice (DoJ) said in a statement yesterday that it has settled its civil forfeiture cases against assets acquired by the former managing director of Abu Dhabi’s International Petroleum Investment Company (IPIC), Khadem al-Qubaisi, using funds allegedly misappropriated from 1MDB.

The funds werebeleieved to have been laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.

IPIC had guaranteed bonds for 1MDB in 2012, arranged by Goldman Sachs Group Inc. Al-Qubaisi was last year reported to have been sentenced to 15 years in prison.

DoJ has estimated more than US$4.5bil (RM19.5bil) was siphoned out of Malaysia by high-level fund officials and their associates between 2009 and 2014 in a scandal that has also embroiled Goldman.

With the settlement and prior related forfeiture cases, the United States will have recovered or assisted in the recovery of nearly US$1.1bil (RM4.8bil) in assets associated with 1MDB.

The Atlantic Property Trust, which oversees the assets at issue in these forfeiture actions, has agreed to forfeit all assets subject to pending forfeiture complaints in which they have a potential interest.

The trustee, who is the wife of al-Qubaisi was also required to cooperate and assist DoJ in the orderly transfer, management and disposition of the relevant assets.

The assets subject to the settlement agreement include the sale proceeds of high-end real estate in Beverly Hills as well as a luxury penthouse in New York City that al-Qubaisi allegedly acquired with funds traceable to misappropriated 1MDB monies.

DoJ said several related civil forfeiture complaints remain pending against assets associated with other alleged co-conspirators.

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