After successfully recouping more than $3 billion from firms including
The state-owned investment fund is suing companies including
The suits are the latest twist in Malaysia’s continuing efforts to recover billions of dollars allegedly siphoned from 1MDB by people connected to the country’s former prime minister. For much of the past decade, authorities have tried to track funds that allegedly flowed from 1MDB into high-end art and real estate, a super yacht and, ironically, the hit Hollywood movie “The Wolf of Wall Street,” chronicling an earlier era of financial crimes.
In a move that broadens the dragnet, at least two suits were filed in London, according to publicly-available court records. Deutsche Bank’s Singapore branch faces a lawsuit, while 1MDB separately sued
JPMorgan declined to comment while Deutsche said it hasn’t been served any papers on 1MDB and isn’t aware of any basis for a legitimate claim. The banks were named earlier on Monday by the Edge newspaper. New York-based Morse declined to comment.
The Malaysian government has had a string of successes in its recovery efforts, the most high-profile coming last year when Goldman Sachs
In March, Deloitte PLT
“The Government’s recovery efforts are now focused on pursuing other wrongdoers who have caused losses to 1MDB and or SRC during the execution of their duties, as parties directly or indirectly involved in 1MDB and or SRC’s various operations and transactions,” Finance Minister
The specific allegations against Deutsche Bank and JPMorgan weren’t immediately clear. According to court documents, 1MDB is seeking $1.1 billion from the German bank and $800 million from the U.S. firm.
The latest effort comes as a Malaysian court is hearing an
Najib, and the fugitive financier Jho Low and his family are among individuals named in the civil suit. Low, whom prosecutors have accused of orchestrating the fraud, has previously professed his innocence.
“We have not received the summons,” Najib’s lawyer Farhan Shafee said. “We also found out from the press.” M. Purvalen, a lawyer representing Jho Low’s mother, said he has not been approached to represent the Low family in this suit.
Deutsche Bank helped 1MDB raise more than $1 billion in 2014. JPMorgan in 2017 was reprimanded by Swiss regulators over its handling of money transfers related to 1MDB in previous years.
(Updates with details on how much Malaysia’s 1MDB is seeking from the banks in the ninth paragraph.)
--With assistance from
To contact the reporter on this story:
Chan Tien Hin, Vidya Root
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