Legal
US Moves To Seize London Property Bought With Malaysian Dirty Money - Media
US authorities are moving to seize property allegedly obtained with money from a state-backed Malaysia fund that has become the center of an international money laundering affair.
In another twist on the 1MDB scandal that has seen banks
kicked out of Singapore and prompted a raft of official probes,
media reports said the US government has filed lawsuits to seize
a London penthouse that served as headquarters for a company
bought with funds linked to the affair.
The property, office building and another flat are all located on
Stratton Street opposite the Ritz hotel in Mayfair. They were
acquired with £77 million ($98 million) which financier Jho Low
obtained from Malaysian’s state-backed 1MDB, according to the US
Department of Justice, as stated in court documents filed June 7
in the US District Court for the Central District of California.
(To see a previous report about Low, see
here.)
Low was described by the Wall Street Journal as
a “flamboyant Malaysian deal maker” and central figure in the
alleged plot to siphon billions of dollars from 1MDB. The London
properties are the latest in a string of homes, art and other
assets scattered around the world to be targeted for seizure by
the US authorities. They have already identified van Gogh and
Monet paintings, and luxury real estate in New York, Los Angeles
and London, allegedly bought with money stolen from 1MDB.
Banks such as Falcon Private
Bank and BSI have been
told to leave Singapore because of failings linked to 1MDB
transactions; authorities in Singapore have also punished a raft
of banks with fines and other measures. The Malaysia money
scandal has seen authorities in Switzerland, US, Singapore and
Luxembourg become involved. It has even touched the makers, by a
strange twist of irony, of the Wolf of Wall
Street film (which chronicled the saga of a US stock
market fraudster).
“Low acquired an interest in the Stratton penthouse and the
Stratton flat using 1MDB proceeds,” the Justice Department was
quoted as saying. The DoJ has been working with authorities in
the UK, the WSJ reported.
The Justice Department said in the filings it is seeking the
forfeiture of the properties in London because they were “derived
from violations of US law” and were involved with
money-laundering offenses.