US seeks to recover US$300m more in 1MBD assets held in Britain
[WASHINGTON] The US Department of Justice is seeking to recover $300 million in additional assets allegedly associated with the multibillion-dollar 1MDB scandal, assets it has traced to an escrow account in the United Kingdom, the agency said on Wednesday.
Malaysian and US authorities estimate US$4.5 billion was stolen from 1MDB in an elaborate scheme that spanned the globe and implicated high-level officials in the fund, former Malaysian Prime Minister Najib Razak, executives at US bank Goldman Sachs, and others. Najib has denied wrongdoing.
In a complaint filed in the Central District of California on Wednesday, the Justice Department said the US$300 million was traceable to a line of credit extended by Venezuela's state oil company Petroleos de Venezuela S.A. to Saudi's PetroSaudi Oil Services in connection with an oil drilling venture.
The companies are already embroiled in a legal dispute over the funds which the Malaysian high court has sought to freeze with cooperation from the British authorities.
The Justice Department said it was also seeking four dozen promotional movie posters that Riza Aziz, a Hollywood producer and Razak's stepson, acquired with more than US$4 million in funds traceable to assets embezzled from 1MDB.
Prosecutors dropped money-laundering charges against Aziz in May after reaching a deal in which he agreed to help authorities recover 1MBD-related assets.
A NEWSLETTER FOR YOU
Asean Business
Business insights centering on South-east Asia's fast-growing economies.
Wednesday's complaint brings the total value of assets the United States has sought to recover in relation to the scandal to US$2.1 billion - the largest ever asset recovery action brought by the agency. So far the United States has recovered or assisted Malaysia in recovering nearly US$1.1 billion in assets.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Thailand’s 500 billion baht stimulus project gets Cabinet approval
China finance ministry echoes Xi’s call for bond trading at PBOC
Bank of Japan to hold rates with focus on hawkish signals to buoy yen
Blackstone-owned Crown Resorts can keep Sydney casino licence, regulator says
Silent and brooding, Trump endures courtroom ordeal
China wants everyone to trade in their old cars, fridges to help save its economy