TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

US agrees 1MDB recovery deal with Malaysian Jho Low

  • News Desk

    Reuters

New York, United States   /   Thu, October 31, 2019   /   07:47 am
US agrees 1MDB recovery deal with Malaysian Jho Low Najib Razak (left) and Low Taek Jho, known as Jho Low, (The Star/ANN)

The US Justice Department said on Wednesday it has reached a settlement deal with financier Jho Low to recover almost $1 billion that was misappropriated from Malaysian investment fund 1MDB.

Low faced charges in the United States and Malaysia over his alleged central role in the scandal at 1Malaysia Development Berhad ( 1MDB ), which was founded by former Prime Minister Najib Razak.

The deal does not include an admission of guilt or wrongdoing and is not tied to the criminal action against Low.

"I am very pleased to confirm that a landmark comprehensive, global settlement has been reached with the United States government," Low said in an emailed statement.

The Malaysian government, Wall Street bank Goldman Sachs Group Inc and Deutsche Bank have all been caught up in the probes into misappropriated funds. Goldman said earlier this month it was cooperating with the Justice Department and other government and regulatory investigations.

"The firm is also engaged in discussions with certain government and regulatory authorities with respect to potential resolution of their investigations," the bank said in a US Securities and Exchange Commission filing on Oct. 15.

Malaysian and US investigators have said at least $4.5 billion was misappropriated from 1MDB by Low and other high-level officials of the fund and their associates.

Last year, Malaysia filed criminal charges against Goldman over its role as underwriter and arranger of three bond sales that raised $6.5 billion for 1MDB. Prosecutors in August filed criminal charges against 17 current and former directors at its units. 

NEWS PULSE