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PETALING JAYA: The US Prime Minister of Justice (DoJ) was charged on Thursday, November 1 by a fugitive businessman, Low Taek Jho, for conspiring to launder money and for having violates the Foreign Corrupt Practices Act of 1Malaysia Development Berhad (1MDB).
The following is a statement issued by the DoJ on Thursday about criminal indictments:
An indictment was opened today in a federal district court in New York, accusing Low Taek Jho, also known as "Jho Low," and Ng Chong Hwa, also known as "Roger Ng ", conspiracy to whitewash billions of people. funds diverted from 1Malaysia Development Bhd (1MDB), Malaysia's investment development fund, and conspiracies to violate the Foreign Corrupt Practices Act (FCPA) by bribing various officials Malaysians and Abu Dhabi.
As part of this indictment, Ng is also charged with conspiring to violate the FCPA by circumventing the internal accounting controls of a large financial institution (Financial Institution) headquartered in New York. , which subscribed to more than 6 billion USD of bonds issued by 1MDB in three separate bond offerings in 2012 and 2013, while Ng worked for the financial institution as general manager.
Ng was arrested earlier today in Malaysia, under a provisional arrest warrant issued at the request of the United States. Low remains on the run
A federal court in the Eastern District of New York today also unveiled the guilty plea of Tim Leissner, former chairman of the Southeast Asian Board of Directors and chief executive officer of New York. Financial institution, on two counts of money laundering and conspiracy to violate the FCPA by bribing various Malaysian and Abu officials. Dhabi and bypassing the financial institution's internal accounting controls while it was in the latter's employment.
According to documents filed by the court, Leissner was ordered to lose US $ 43,700,000 as a result of his crimes.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John P. Cronan, Senior Assistant Deputy Attorney General of the Criminal Division of the Department of Justice, William F. Sweeney, Jr, Deputy Director of the Department of Justice Federal Office of the New York Investigation Bureau (FBI) and R. Damon Rowe, Special Agent for Criminal Investigations of the Internal Revenue Service (IRS-CI), of the Los Angeles Field Office, announced the charge leaders.
The criminal regime
1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects in the economic interest of Malaysia and its people.
As documented in the court documents, between about 2009 and 2014, when 1MDB raised funds to finance its projects, billions of dollars were misappropriated and misappropriated from the 1MDB, including funds raised by 1MDB in 2012 and 2013 at average of three bond transactions executed with the Bank. Institution.
As part of this scheme, and according to the courts' allegations, Low, Ng, Leissner and others conspired to bribe government officials in Malaysia, including at 1MDB, and Abu Dhabi to obtain and keep lucrative activities for the financial institution, notably for 2012 and 2006. 2013 bond transactions.
They also allegedly conspired to launder the proceeds of their criminal behavior through the US financial system by buying, among other things, luxury residential properties in New York and elsewhere, as well as works of art. auction house based in New York, and funding major projects. Hollywood movies.
As was claimed, Low's close relationship with senior government officials in Malaysia and Abu Dhabi was at the heart of the project.
Ng, Leissner and other members of the financial institution knew that Low was close to these government officials, including a senior Malaysian government official empowered to approve the 1MDB's trade decisions (Malaysian official no.1 ).
According to allegations filed in court records, beginning approximately in 2009 and continuing until 2014, Low, Ng, Leissner and the other co-conspirators used Low's relationships to close deals with a financial institution by paying and paying hundreds of millions of dollars in bribes, including to ensure that 1MDB assigns the financial institution a role in three bond transactions called "Project Magnolia", "Project Maximus" and "Project Catalyze" .
As a result of his work for 1MDB during this period, the financial institution reportedly received approximately US $ 600 million in fees and revenues, as well as increasing the prestige of its reputation.
At the same time, Ng, Leissner and others would have received significant bonuses and strengthened their reputation with the financial institution.
In total, according to court allegations, more than $ 2.7 billion would have been diverted from 1MDB and Low, Ng, Leissner and others conspired to launder this money through the US financial system in order to pour out pots wine to foreign officials and for their personal benefit. and their loved ones.
Magnolia Project
In early 2012, according to court allegations, at the conclusion of a series of meetings held in Malaysia and the UK, Low, Leissner, Ng and the co-conspirators have agreed that with the help of the financial institution, 1MDB would issue 1.75 billion US dollars. in bonds guaranteed by an entity wholly owned and controlled by the Government of Abu Dhabi.
At the time, Low would have explained to Ng, Leissner and others that, in order to complete the transaction, bribes should be paid to officials in Malaysia and Abu Dhabi and that, according to the allegations, hundreds of millions of dollars have been paid to officials in these countries. .
Low, Ng, Leissner and other co-conspirators also knew that Low had the intention of using misappropriated funds from the bond transaction to bribe and influence officials in order to obtain approvals necessary and any additional help needed to run the Magnolia project for the financial institution and pay bribes to Ng, Leissner and others.
In or about March 2012, 1MDB would have chosen this financial institution to be the sole bookkeeper and arranger of the Magnolia project.
As part of the program, Low and other co-conspirators called 1MDB officials, promising to pay bribes and kickbacks.
In one case, as has been alleged in court proceedings, as part of the Magnolia project, Low told a 1MDB manager that he "[g]ive [the official a] big gift "at the closing of the transaction.
According to allegations contained in court documents, Ng, Leissner and other employees of the financial institution knew that bribes and bribes were paid under the Magnolia project.
Following the closing of the Magnolia project on or about May 21, 2012, more than $ 500 million of bond proceeds were diverted and diverted from 1MDB through numerous electronic transfers to bank accounts on behalf of fictitious companies owned and controlled by Low, Leissner, Ng and other co-conspirators, including a senior Abu Dhabi entity official who guaranteed the obligations of the Magnolia Project and a close relative of the Malaysian, official no.
As alleged, the proceeds of the surety transferred to a relative of the Malaysian representative of the Malaysian official No. 1 were then used by the parent's American film production company for the production of the film "The Wolf of Wall Street", based on on an old eastern district of New District. York pursuit.
Maximus Project and Catalyze Project
The court's records further alleged that from May 2012 to 2013, Low, Ng, Leissner and their co-conspirators continued to work for the financial institution to obtain and retain additional 1MDB related activities, including obligations referred to as "Project Maximus". "Catalyze Project", whose transactions generated substantial fees and revenues for the financial institution.
As was claimed, although both transactions were designed to raise more than $ 4 billion for 1MDB investment and development projects, Low, Ng, Leissner and other co-conspirators would have used these transactions to reinforce the criminal regime, thereby laundering hundreds of millions of dollars of funds The funds from these transactions were diverted to wholly owned bank accounts and controlled, inter alia, by co-conspirators, including Low, Leissner, and others. officials in Malaysia and Abu Dhabi.
As alleged in court filings, Ng, Leissner and at least one other employee of the Financial Institution knew that Low paid and paid bribes to encourage Malaysian and Abu Dhabi officials to obtain bribes. approvals necessary for the execution of the Maximus project. Catalyze Project.
Low, Ng, Leissner and others would have supposed that large portions of the proceeds of the bonds would be illegally diverted to themselves and others, including to representatives of foreign governments.
As part of the alleged ploy in the courts, Low, Ng, Leissner and other co-conspirators again used a series of wire transfers to launder billions of dollars of misappropriated funds and fraudulently misappropriated projects Maximus and Catalyze.
Following the closing of the Maximus project, US $ 790 million of bond proceeds were transferred through a series of front company accounts owned and controlled by Low, Leissner and others, including the accounts of senior executives. Malaysia and Abu Dhabi.
In particular, Leissner and Ng have transferred millions of dollars of these funds to accounts of 1MDB officials or their relatives in exchange for their help in obtaining and maintaining business on behalf of the financial institution.
More than $ 35 million of proceeds from the bond would also have been used by a co-conspirator to help acquire a condominium in New York (New York), effective property of Low.
Similarly, according to the courts' allegations, after the closing of the Catalyze project in March 2013, more than $ 1 billion of misappropriated funds related to the transaction were laundered, on the order of Low, into bank accounts in the name of Entities with real property and control. Low, Leissner and others, including 1MDB representatives.
As alleged, more than US $ 4 million of the funds were transferred to a bank account belonging to a relative of Ng.
In addition, under this program, Low used a screen company account to receive more than $ 1 billion of Project Catalyze's loan proceeds and spent approximately $ 137 million of these funds on the purchase. of works of art in an auction house of high-end works of art in New York, New York.
Operations 1MDB post-Catalyze at the financial institution
The financial institution continued to seek customers from 1MDB after the Catalyze project.
As alleged, Leissner and others were particularly committed to giving the financial institution a role in an initial public offering (IPO) project for 1MDB's energy assets.
To induce some officials to give the financial institution a role in the proposed initial public offering, Low and Leissner reportedly continued to pay bribes to certain 1MDB employees.
For example, as alleged, in an online chat between Low and Leissner in June 2014, Low and Leissner spoke of the need to "suck" a 1MDB manager and send "cakes" to an alleged person to be the wife of a Malaysian official. # 1.
A few months after this discussion, a bank account owned and controlled by Leissner and his parent was used to transfer approximately $ 4.1 million to a high-end jeweler in New York, in part, to pay for jewelery. gold for the Malaysian official # 1's wife.
The charges laid in the indictment against Low and Ng are allegations, and these defendants are presumed innocent until proven otherwise.
The investigation was conducted jointly by the FBI's International Corruption Department and the IRS criminal investigation.
Government criminal cases are handled by the Business and Value Fraud Section of the Office of the Prosecutor of the United States for the District of New York and the Anti-Money Laundering and Collection Section. assets (MLARS) and fraud.
Deputy Attorneys for the United States, Jacquelyn M. Kasulis and Drew Rolle, and trial attorneys Jennifer E. Ambuehl, Woo S. Lee, Mary McCarthy Ann, Katherine A. Nielsen and Nikhila Raj are pursuing the case. US Attorneys and District Attorneys in US District Attorneys' Offices in Eastern New York and Central California provided valuable assistance with various aspects of the investigation, including civil and criminal forfeitures .
The Office of International Affairs of the Criminal Division has provided crucial assistance in this case.
The Department also appreciates the extensive cooperation and assistance provided by the US Securities and Exchange Commission, the Federal Reserve Board of Governors, and the Federal Reserve Bank of New York. The Department also appreciates the important assistance provided by the Malaysian Chambers of the Attorney General, the Malaysian Royal Police Force, the Malaysian Anti-Corruption Commission, the Singapore Chambers of the Attorney General, the Commercial Police Division of Singapore Police. and the Office of the Attorney General. of Switzerland, the judicial authorities of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand Ducal Police of Luxembourg.
The entirety of the indictments can be downloaded from the following links:
Download US v. Leissner Information
Download US v. Jho et al. Charge
Related stories:
Roger Ng arrested, Leissner pleads guilty
Jho Low is still looking for immunity, says Daim
Jho Low maintains his innocence despite accusations of the US DoJ exceeding 1MDB
Goldman Sachs and 1MDB: What we learned from US accusations
1MDB: How did Leissner and other leaders bypass Goldman's compliance rules?
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