The Justice Department has reported the largest ever civil forfeiture recouped in history at $85m.
The government regulator was investigating Malaysia’s sovereign investment development fund. Known as 1Malaysia Development Berhad (1MDB), the Justice Department has now reached an agreement with the company’s former general counsel, “Jasmine” Loo Ai Swan (Loo).
The agreement brings to a close a lengthy investigation into the artwork by “Pablo Picasso and a financial account in Switzerland traced to funds allegedly embezzled from 1MDB,” according to the report. Loo has had no formal criminal charges brought forward as a result of the agreement and will retain the assets and account.
The Justice Department has also progressed and obtained forfeiture orders for items purchased by Low Taek Jho, also known as Jho Low (Low).
The items recovered included art by renowned painters Vincent Van Gogh, Claude Monet, Pablo Picasso, Jean-Michel Basquiat, and Diane Arbus. They are all reportedly part of the assets purchased by the seized 1MDB funds.
Art included in $85m civil forfeiture haul
The case is being investigated by the FBI’s International Corruption Squads in New York City and Los Angeles and the IRS Criminal Investigation Los Angeles Field Office.
Low has been involved in multiple civil forfeiture cases and charges by government regulators. From 2009 through 2015, Low and a cabal of co-conspirators were the focus of multiple charges for purchases made by funds allegedly embezzled by 1MDB.
The report said, “$4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Low and Loo, through a criminal conspiracy involving international money laundering and bribery.”
Originally intended to drive foreign partnerships and investment, 1MDB has been warped by illegal operators to use the service for embezzlement.
Low is at the center of criminal charges in the Eastern District of New York and the District of Columbia. For bribery of foreign officials and for attempting to conceal campaign contributions during the 2012 presidential elections respectively.
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