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Fugitive Malaysian Financier Jho Low and US Justice Department Reach Agreement on 1MDB Money Laundering Case!

Fugitive Malaysian financier Jho Low
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The U.S. Department of Justice (DOJ) announced that it has reached a confidential agreement with fugitive Malsaysian financier Low Taek Jho, better known as Jho Low, aimed at resolving the extensive asset forfeiture cases linked to the 1Malaysia Development Bhd (1MDB) corruption and money laundering scandal. This agreement represents a potential final chapter in the long-running legal saga and the largest civil forfeiture ever concluded by DOJ.

Details of the Agreement

According to documents reviewed by CNA, the DOJ, along with Jho Low’s family and their financial trustee, aims to finalize a “global, comprehensive agreement” that would permanently resolve the United States’ civil, criminal, and administrative asset forfeiture actions involving assets traceable to 1MDB. This settlement plan involves surrendering previously identified assets as well as those not yet claimed or captured by international prosecuting agencies.

The agreement was signed in early June by Margaret A. Moeser, Acting Chief of the Money Laundering and Asset Recovery Section in the DOJ’s Criminal Division, Low’s family lawyer Robin Rathmell of Kasowitz Benson Torres, and the lawyers for the family’s financial trustee.

Scope of the Settlement

This new settlement is significant as it could conclude one of Washington’s longest-running asset forfeiture cases, which former US Attorney General Jeff Sessions once described as “kleptocracy at its worst.” The deal includes provisions for the liquidation and transfer of net proceeds to Malaysia and other international jurisdictions involved in the case.

The DOJ announced on June 26 that it would recover an additional $100 million through this settlement, covering assets such as artworks by Andy Warhol and Claude Monet, financial deposits, and properties in Singapore and other locations. The Warhol and Monet pieces alone were acquired by Low for around $35 million.

Background and Legal Proceedings

The 1MDB scandal, masterminded by former Malaysian Prime Minister Najib Razak and Jho Low, involved the misappropriation of over $4.5 billion from the state-owned sovereign fund between 2009 and 2015. Low faces numerous charges, including conspiracy to launder billions of dollars embezzled from 1MDB and violations of the Foreign Corrupt Practices Act. Additionally, he is charged in the District of Columbia for allegedly conspiring to make and conceal foreign campaign contributions during the 2012 US presidential election.

Despite the new agreement, the DOJ emphasized that it does not release any entities or individuals from pending or potential criminal charges.

Jho Low remains a fugitive, reportedly hiding in China. However, the settlement marks a critical step towards resolving the extensive legal entanglements surrounding the 1MDB scandal. It follows a previous $700 million settlement in October 2019.

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