U.S. Seeks $1 Billion in Asset Seizures Tied to Malaysia's 1MDB
20 July 2016 - 11:40PM
Dow Jones News
The Justice Department filed civil-forfeiture complaints against
more than $1 billion of assets allegedly acquired using funds
misappropriated from a Malaysian economic development fund,
according to court filings made public Wednesday.
The assets, which were purchased by the stepson of Malaysia's
prime minister and people connected to the fund, include high-end
real estate and hotel properties in New York City, Los Angeles and
London, artwork by Vincent van Gogh and Claude Monet, and a $35
million jet. They also include rights to the 2013 film " The Wolf
of Wall Street," the filings say.
Malaysian Prime Minister Najib Razak isn't named in filings,
which were viewed by The Wall Street Journal.
But they describe a major recipient of funds allegedly siphoned
from 1Malaysia Development Bhd. whose description matches Mr.
Najib's. Descriptions of that individual, called "Malaysian
Official 1" in the filings, include information about Mr. Najib's
position at 1MDB as well as transfers into his personal bank
accounts that Mr. Najib and other government officials acknowledged
publicly.
The Journal reported last year how Mr. Najib played a key role
in decisions at the fund—which Mr. Najib launched in 2009 to
stimulate Malaysia's economy—including issuing bonds and firing
auditors.
Mr. Najib, who has denied wrongdoing, repeatedly has played down
troubles at 1MDB, which has little to show for its economic
development efforts despite raising $13 billion. He has said 1MDB's
real problem was an overreliance on debt that it has struggled to
pay back and that "attacks" by opposition politicians hurt a
planned public offering.
His administration has criticized the Journal, claiming its
stories about 1MDB were false and based on "sources that may or may
not exist."
Executives at 1MDB have denied any funds were missing and echoed
Mr. Najib's claims that its primary problem was the wrong business
plan. Mr. Najib and 1MDB didn't respond to requests for comment
Wednesday.
Celine Fernandez and Yantoultra Ngui contributed to this
article.
Write to Bradley Hope at bradley.hope@wsj.com and Tom Wright at
tom.wright@wsj.com
(END) Dow Jones Newswires
July 20, 2016 09:25 ET (13:25 GMT)
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