US attorney general: Corrupt officials treated 1MDB as ‘personal bank account’

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US Attorney General Loretta E Lynch delivered these remarks at a press conference yesterday to announce “significant kleptocracy enforcement action” to recover more than US$1bn obtained from corruption involving 1MDB.

Good morning, and thank you all for being here….

I’m joined today by Assistant Attorney General for the Criminal Division [Leslie] Caldwell; U.S. Attorney [Eileen] Decker of the Central District of California; FBI Deputy Director [Andrew] McCabe; and Richard Weber, Chief of Criminal Investigation at the Internal Revenue Service. We are here to announce a significant step in our ongoing work to combat global corruption and to ensure that the United States offers no haven to those who illegally use public funds for private gain. Today, the Department of Justice filed a civil complaint seeking to forfeit and recover more than $1 billion in assets associated with an international conspiracy to launder funds stolen from 1 Malaysia Development Berhad, or 1MDB, a company wholly owned by the government of Malaysia.

The $1 billion in assets are just a portion of more than $3 billion that was stolen from 1MDB and laundered through American financial institutions in violation of U.S. law. 1MDB was created by the Malaysian government to promote economic development through international partnerships and foreign direct investment, with the ultimate goal of improving the well-being of the Malaysian people. Unfortunately, a number of corrupt 1MDB officials treated this public trust as a personal bank account.

Our complaint alleges that from 2009 through 2015, these officials and their associates conspired to misappropriate and launder billions of dollars from 1MDB. As my colleagues will explain in further detail, the co-conspirators laundered their stolen funds through a complex web of opaque transactions and fraudulent shell companies with bank accounts in countries around the world, including Switzerland, Singapore and the United States. The funds were then used to purchase a range of assets for the conspirators and their relatives and associates, including high-end real estate in New York and Los Angeles, artworks by Vincent Van Gogh and Claude Monet and a jet aircraft.

Today’s case is the largest single action ever brought by the department’s Kleptocracy Asset Recovery Initiative, which was established by Attorney General [Eric] Holder in 2010 to forfeit the proceeds of foreign official corruption and, where possible, to use the recovered assets to benefit the people harmed. This case, and the Kleptocracy Initiative as a whole, should serve as a sign of our firm commitment to fighting international corruption. It should send a signal that the Department of Justice is determined to prevent the American financial system from being used as a conduit for corruption. And it should make clear to corrupt officials around the world that we will be relentless in our efforts to deny them the proceeds of their crimes.

I want to thank the team of prosecutors and paralegals from the Criminal Division’s Asset Forfeiture and Money Laundering Section and the U.S. Attorney’s Office for the Central District of California, who have worked tirelessly on this matter. I also want to thank the agents from the FBI’s International Corruption Unit and the IRS’s Criminal Investigations Division, who assisted them in this case. And I am grateful to the Criminal Division’s Office of International Affairs for their vital contributions. At this time, I will turn things over to Assistant Attorney General [Leslie] Caldwell, who will speak in further detail about today’s filing.

My own question: What are the Malaysian police and the MACC doing about this? Are they content to leave it all to international investigators to trace and recover the funds and nail the culprits?

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91 Comments on "US attorney general: Corrupt officials treated 1MDB as ‘personal bank account’"

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David Loman
David Loman

Leonardo DiCaprio, Jho Low, the Malaysian Money Scandal and His “Unusual” Foundation
http://www.hollywoodreporter.com/features/leonardo-dicaprio-malaysian-money-scandal-920199

According to the Justice Department, certain donations to the Oscar winner’s charity came directly from a multibillion-dollar embezzlement drama in Southeast Asia.

Awang Khenit
Awang Khenit

U.S. government: Billions stolen from Malaysian fund (CNN)
https://youtube.com/watch?v=jXtbLxl_nMk

Tua Thai Chee
Tua Thai Chee
NYT: Malaysia’s Leader, Dogged by a Billion-Dollar Scandal, Proves Untouchable The allegations of high-level corruption and the lack of any impartial Malaysian investigation highlight the fact that the region’s movement toward democracy has left Malaysia untouched, said Donald Greenlees, an authority on Southeast Asia with Australian National University. “Najib is a throwback to the era of Marcos’s Philippines and Suharto’s Indonesia with ruling families hungry for power and great wealth,” he said. “Imelda had her shoes and Rosmah has her Birkin bags. But the bags are vastly more valuable than the shoes.” http://www.nytimes.com/2016/07/31/world/asia/malaysia-najib-razak.html?_r=0 “Clearly, in order to save his own… Read more »
Remus
Remus

Wonder what action the new MACC chief would take on this MO1 matter since he has vowed on Quran to be effective?…

Jolly Mike
Jolly Mike

Using religion to camouflage the dirty deeds is the modus operandi to convince those with blind faith.

tunglang
tunglang

Only Karma will deal firmly with these corrupts.
Read about Karma’s Eighteen Layers of Hell (Illustrated):
Sixteen, Seventeenth & Eighteenth Floors (Layers) are for those who steal, who abuse their power & oppress the people, & who exploit the loopholes in the law to cheat and engage in malpractice respectively.
http://www.cvltnation.com/the-eighteen-layers-of-chinese-hell/
Note: there are no hell’s virgins waiting for you down there!

Awang Khenit
Awang Khenit
MAHATHIR’S FATAL LEGACY – NAJIB RAZAK: MALAYSIA ON IRREVERSIBLE PATH FOR BUST-UP At least embattled Malaysian Prime Minister Najib Razak is right about one thing. The current mess in Malaysian politics is the making of his greatest nemesis, Mahathir Mohamad, who led the Southeast Asian nation with an iron fist from 1981-2003. What Najib fails to fathom is that Mahathir has not produced this mess by criticising his leadership, but by paving Najib’s path to power in the fashion he did during his decades in office. Mahathir may believe that he can end the crisis by bringing Najib down. But… Read more »
Awang Khenit
Awang Khenit
WHY IS THE FORMER PM OF MALAYSIA TRYING TO OVERTHROW THE CURRENT ONE Tun Dr Mahathir Mohamad had hoped to take his campaign to topple Prime Minister Datuk Seri Najib Razak to an international audience on the Al Jazeera news network but ended up having his own misdeeds exposed. The host of Al Jazeera’s UpFront programme, Mehdi Hasan had raised the question that “in a democracy, shouldn’t the people kick out a prime minister, not the former prime minister?’ and getting what must be Mahathir’s standard spin on corruption, mismanagement and misusing government powers that he has levelled on Najib… Read more »
Jolly Mike
Jolly Mike

The cousin Krishamudin is taking care of the army.
Unlikely to see Coup Dedak unless he faces Hang Tuah-Hang Jebat dilemma.

gk ong
gk ong
Gobind asks AG these questions: Did the AG refuse consent for mutual legal assistance by the Malaysian Anti-Corruption Commission (MACC) as alleged? If so, why was consent refused? Is it not the case that the documents sought through that process were essential to ascertain the money-trail leading to the deposits in an account relevant to that investigation? Without that documentary evidence sought, how did he verify the purported claim that the said monies were from a donation? Hasn’t that decision now been thrown open by the particulars set out in the suit by the DOJ? Why did the AG refuse… Read more »
LowBak
LowBak
The clues point to only one person. The United States Department of Justice has filed a lawsuit against some individuals accused of using an investment firm owned by the Malaysian government to steal more than $1 billion. The lawsuit also mentioned a certain “Malaysian Official 1,” prompting many to ask if it refers to Prime Minister Najib since he has control over 1MDB investment firm and his stepson is one of the accused. The lawsuit aims to recover some 17 assets in the United States, which have been allegedly acquired through 1MDB funds. U.S. officials said the lawsuit is the… Read more »
Awang Khenit
Awang Khenit
tunglang
tunglang

Some love to ride a Malaysian #1 Horse With No Name. Even when it inevitably “chhua lu ke Holland!”
Al Ries & Jack Trout’s “Horse Sense” makes better sense.
Enjoy this while you ride A Horse With No Name (sang from America):
https://www.youtube.com/watch?v=1iiDp6ga_qQ

mojo kid
mojo kid

Apanama is the horse with no name.

Hacket
Hacket

Umno Youth has filed a police report against former Bank Negara governor Zeti Akthar Aziz, outgoing MACC chief Abu Kasim Mohamed and ex-attorney-general Abdul Gani Patail.

According to Umno vice-chief Khairul Azwan Harun, the three are believed to be involved in a conspiracy to topple PM Najib and the Malaysian government.

‘Civil war’ in Umno soon?

Teh
Teh

Chinese should stay out of Umno civil war, do not take part in Bersih rally to become the easy scapegoat.

johan
johan

(Some party) will likely plant some ‘chow kow trouble makers’ at next Bersih rally eg to stamp on Ah Jib Kor portrait?

selvam
selvam

Umno is using the same trick to tell kampung malays that there is a conspiracy topple the democratically elected and beloved PM Najib. Since 99.99% of these rural people can only understand Bahasa Msia, TV3 nightly buletin at 8pm can definitely deceived the targeted audience into believing that Najibis innocent.

Aisayman
Aisayman

Khairy J must make his position clear.
Is he still setia to team MO1?
Or is his Umno Youth minions are now making decision for him?

YGC
YGC

Najib has good sense of humour in saying:

“Let’s not get carried away with the matter. Leave it to the judicial process for we believe that sooner or later the truth will prevail,”

tunglang
tunglang
Dr M’s lawyer tells Shahrizat : M’sians not stupid as cows https://www.malaysiakini.com/news/349726 A lawyer has told Wanita Umno chief Shahrizat Abdul Jalil, who classed the US’ forfeiture lawsuit against 1MDB as foreign meddling, that Malaysians are not as stupid as cows. “My dearest Shahrizat, the US Department of Justice’s (DOJ) court forfeiture cause papers have nothing whatsoever to do with foreigners meddling in our beloved nation’s internal affairs. “In fact, it’s to do with our own fraudsters meddling with foreign laws and regulations,” said Haniff Khatri Abdulla in a Facebook post today. “So, don’t ever dare to think that we,… Read more »
Yong TF
Yong TF
The response of the Malaysian government authorities to the civil suits filed by the US Department of Justice to seize more than US$ 1 billion (RM 4.02 billion) in assets allegedly linked to 1MDB has been a huge disappointment. Faced with suits that allege massive embezzlement of funds and one of the worst money laundering scams in history, Cabinet Ministers and the Attorney-General are determined to absolve ” Malaysian Official 1″ of any wrongdoing. They are obsessed with preserving, protecting and perpetuating the Prime Minister’s position whatever the costs and consequences. It is not just the US Attorney-General that has… Read more »
tunglang
tunglang

Sekiranya, janganlah “menglembukan Rakyat!”

SmallJoe
SmallJoe

Najib said 1MDB has helped to sponsor many Malays to perform haj at Mecca.
So likely Rural Malays will continue to support him?

selvam
selvam

Sin money for religious duties?
Wonder what the mufti have to say.
Unfortunately the religious authorities are more concern with the sexiness of Selena Gomez.

johan
johan

PAS people better don’t watch Olympics since many female athletes will have sports attire that is deemed ‘tak senonoh’.

mojo kid
mojo kid

Without sin the redeemer will be irrelevant? Anyway today’s tudung has been fashioned to add the element of sexiness to attract attention, causing arousal could be the unintended side effect?

tunglang
tunglang

Sexiness is a sin!
Arousal of the mind is animal behaviour out of self-control!
Imagination is Satan’s planted seed of anything-erotic-goes in the head…
So, pls abstain from all the above if you can by all means & you will not get into trouble in Boleh Land’s facing the calm South China Sea.

YGC
YGC

Many kids grew up knowing Selena Gomez as innocent Disney star. Why must the religious folks worried about her sexiness?

Meanwhile in Kelantan, the state authority is disturbed by the picture of Bollywood starlet Aishwarya Rai in the Longines watch advertisement for being sexy without covering her aurat.

Hacket
Hacket

Mainstream media NST, Star, Urusan, BH, Kosmo and Sinar Harian are all quiet and silent on Mr MO1, who is now getting Fatty Jho to be fall guy.

SmallJoe
SmallJoe

Obviously Umno [might] say it is a Chinese guy that abused 1MDB, a perfect script for Utusan/TV3 to spin in the coming weeks. Fatty Jho could be ‘silenced’ before he could testify against the mastermind, if he is brought back to KankungLand by IGP.

tunglang
tunglang
What is kleptocracy? https://www.malaysiakini.com/news/349714 COMMENT In 2004 Transparency International named Indonesia president Suharto as the most corrupt world leader of the past 20 year who stole between US$15 billion to US$35 billion. He topped notorious kleptocrat Ferdinand Marcos of the Phillipines who robbed between US$5 billion to US$10 billion. What is actually kleptocracy? ‘Klepto’ is thief, ‘cracy’ is rule. Therefore, literally kleptocracy means ‘rule by thieves’. A rule of government of any possible kind, which those in power exploit and steal national resources. That used its power and official position for personal gain or to steal from its people. Aiming… Read more »
lim

Well said tunglang, clap clap !!!

We are ruled by thieves, indeed…

However, it cant be more sad that we sttill have quite a high percentage of people who support the thieves !!!!

tunglang
tunglang

If you catch a suspect (of big time thievery), do you simply reassure him by saying the national disquiet as mere brouhaha?
Least of all mindlessness to encourage him with words like “Be Strong!”
We must be the most bodoh (stupid) of all nations in the entire civilised world!
Malaysia Boleh Bodoh.

tunglang
tunglang

I will be ashamed to Skype face to face with my foreign friends until the very hour these thieves are caught & thrown into jails.
Where is my “Good Morning” mini China towel to cover my bin-chui?

Hacket
Hacket

Malaysian Official No:1 flew all the way to Hawaii to play Golf with hipocrate Obama, so he won’t be named? If … Hillary becomes President, then she [may] continue Obama’s legacy of playing Golf with Kleptocrates around the world.

If Donald Trump becomes president, then there is hope that Malaysian Kleptocrate No: 1 may be named and shamed and maybe a warrant of arrest issued. Donald Trump can not only ‘Make America great again’,he can help Malaysia by exposing the Kleptocrate No. 1 and also ‘Making Malaysia Boleh Again’.

SmallJoe
SmallJoe

The modus operandi is simple. I take $2.6 billion from 1MDB and now I give back $10.4 million to the kampong folks so they will continue to elect BN to continue pilfering the govt coffers. Thanks to our world class education system and ignorant people who prefer religious studies, the 48% of the electorate will never know that such crimes have been committed. BR1M, a bag of rice and a paid pilgrimage is all that matters to them.

Aisayman
Aisayman

They are used to duit haram derived from taxes from Magnum 4D, SportsToto, DaMaCai and Genting Casino to support bumiputera agenda. Jakim has never complain about the source of money.

YGC
YGC

The entire world is laughing at us while the minions are protecting its culprit master, claiming it was a conspiracy by the old horse to discredit the B Warrior. Bodoh because the propaganda system has made the people to blindly setia to its corrupted leader.

tunglang
tunglang
Gerakan Youth: Obvious who ‘M’sian Official 1’ is, but… https://www.malaysiakini.com/news/349640 Gerakan Youth deputy chief Andy Yong said he believes Prime Minister Najib Abdul Razak had been “wrongly advised” on 1MDB, leading to the present “brouhaha” over the US civil forfeiture suits. “There have been many sarcastic reports and statements in the social media on who is the ‘Malaysian Official 1’ (named in US court documents). I believe the answer is obvious. “I believe Najib’s intention was good, but somehow manipulated by certain people for self-interest. My analysis: Either some people have cow’s brains, eat kangkong & are milked almost dry… Read more »
Hacket
Hacket
UMNO’s minions never cease to amaze Malaysians. They think they could absolve their dearest MO1 from criminal liability. They have forgotten that the statute of limitations does not apply to crimes such as this (or even murder if I may add). They can only buy time for Najib but that’s all to it. So looking at it plain and simple, the making of the police report is not because of any plot or conspiracy to topple the PM. Rather it is a plot to discredit the DOJ (and by inference the FBI too) by using Zeti, Gani and Abu Kasim… Read more »
SmallJoe
SmallJoe
Najib is still playing dumb despite himself know very well the Malaysia Official No 1 is refer to him. Hopefully one day DOJ will go one step further to tell the world that the MO1=Najib. Then the whole 1MDB issue will come to the end. It’s been drag too long. Or maybe the next US President a Trump will be the ‘executioner’? Najib realizes what the consequence will be if he is out of office. So one should expect him to play the nationalistic card using race and religion real soon. Already Jamal Yunus is sounding warning with red shirt… Read more »
Hacket
Hacket

Andy Yong is using the script provided by Umno, obviously.

lim

My interpretation for the gelakan youth is jilat kuat kuat !!!

For those who are against dap, pakatan in penang, think hard again you really want this type of gelakan to ruin you for another 18 years ???

Today, the Financial Times called him as a disastrous pm !!!

tunglang
tunglang
Zooney
Zooney
Sudah tibe masenya pakatan harapan mempunyai logo sendiri gabungan parti2 seperti mane bn dgn lambang dacingnya.name dah ade logo tu buatlah satu supaya boleh digunekan pru14 nanti.bukan susah mane pun buat logo perpaduan pakatan harapan itu pun kene ajarka?logo pakatan penting supaya pengundi2 yg mudah keliru bile hari mengundi tidak lagi sukar untuk bezakan yg mane kawan yg mana musuh.dlm manifesto pakatan tu nanti tolong letak 7 perkare utame pakatan akan buat jike berjaye tewaskan bn umno pru14.Yakinlah dgn 7 perkare ini jadi agenda utama ramai rakyat yg akan berikan undi mereka pada Pakatan Harapan PRU14,insya Allah. 1.Hapuskan terus GST… Read more »
abb
abb

or for the matter the Minister of Integrity ?

SmallJoe
SmallJoe

Paul Low is attempting a new low in his limbo rock?

abb
abb

heard anything from gerakan, the official partner of Malaysia Official 1?

Bigjoe
Bigjoe

The real question to be asked is to Khairy Jamaluddin – whether he thinks Malaysian Official No. 1 is not Najib? If he does not answer, does not act and break from Najib, then the corruption, the deviant, is well into the next generation and there is nothing to salvage in UMNO. UMNO Baru must not only lose power, it must DIE

Kabali @ Transfer Road
Kabali @ Transfer Road

http://www.hollywoodreporter.com/news/leonardo-dicaprio-dragged-growing-wolf-912941

Fat boy Jho gave DiCaprio a Oscar once owned by Marlon Brandi worth US$600k as not that present.

I think Jho’s father Larry Loh should now donate equivalent of US$600k to Penang charity to seek almighty forgiveness!

SmallJoe
SmallJoe

Will M01 gets the same fate as Kabali versi Malaysia (spoiler alert) where he surrendered to Malaysian authority?

tunglang
tunglang

These p…. feeding on Ah Kong’s money should be [punished].
Why I called these p…. , b’cos they have the inclination to merrily gamble away blood, sweat & tears money (which they didn’t work for) & felt no sorrow for Malaysians.
And by deception, to enjoy these money as if their bank accounts are attracting ‘gift money’ & donations.
With these … around, where can Malaysia achieve 2020 Vision???
Dr. MadHatter had better do more to corner these … which are bad by-products of MadHatterism legacy.
If these … can get away, Malaysia is doomed.

fearless

really……..

Super Rajni Star
Super Rajni Star

So the #1 official of Bolehland is the one who “sponsored” Psy concert at Hang Chiang field, and probably higly likely paid via your taxpayer money !

zoro
zoro

lucky penang to have psy to do the horse dance. the rest have tin kosong.

EjenAli
EjenAli

Wang 1MDB Digunakan Untuk Pembayaran Hutang Judi Di Las Vegas
https://youtube.com/watch?v=IwIsv9iBKDw

SmallJoe
SmallJoe

But Umno [might] instead twist and say 1MDB money pay for pilgrimage fees!

Phua Kai Lit
Phua Kai Lit

Someone from the ranks of the persons named will
squeal and spill all the beans under a plea bargain?

There is no honour amongst mega-thieves.

Phua Kai Lit
Phua Kai Lit

Even if he is “squeaky clean”, it all happened under his watch
as Finance Minister, and head of 1MDB’s board.

lim

Phua, how can he be clean, when a large amount of monies went to his account??? You think he can go off with i have no idea the monies were in my account ??? It confirms the credibility of our A++AG, Mr Apajadi, the rest am lazy to mention…

Phua Kai Lit
Phua Kai Lit

Sarcasm and irony lah !

YGC
YGC

Always remember the GST you pay is used to cover the losses of MDB, whether it is corrupted or not.

Ernie
Ernie

The U.S. Justice Department alleges that assets of one billion dollars have been stolen from the Malaysian State Development Fund 1MDB.
CNN’s Andrew Stevens reports:
https://youtube.com/watch?v=jXtbLxl_nMk

Al Jazeera: Calls for Malaysia PM’s resignation over 1MDB scandal
https://youtube.com/watch?v=9FEBQQPH_AE

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