Saturday, 17 June 2017

US connects Malaysia's First Lady to $30M stolen funds

The U.S. Justice Department says nearly 30 million dollars of funds stolen from scandal-hit 1Malaysia Development Berhad (1MDB) was used to buy jewelry for the prime minister’s wife, including a rare 22-carat pink diamond set in a necklace.

US links Malaysia’s first lady to $30m stolen funds

This is based on latest filings by the U.S. Justice Department 
in a civil lawsuit lodged at the District Court in Los Angeles.
It did not identify Prime Minister Najib Razak or his wife Rosmah Mansor by name, but said the jewelry purchases were for the wife of ‘Malaysian Official 1’.
Malaysian and U.S. government sources have previously confirmed that ‘Malaysian Official 1’ refers to Najib.

The diamond necklace set alone cost 27.3 million dollars, according to latest filings in a lawsuit that was launched in July 2016.
The accusations will provide further ammunition for Najib’s political rivals, who often criticize his wife for lavish spending, and come at an awkward time for the Malaysian leader, as he had been expected to call a snap election later this year, reports Reuters.
Rosmah’s aide did not immediately respond to requests for comment.

The prime minister’s office, in a statement early on Friday, said it was “concerned by the unnecessary and gratuitous naming of certain matters and individuals that are only relevant to domestic political manipulation and interference.” Najib has consistently denied any wrongdoing.
A total of 4.5 billion dollars have been misappropriated from 1MDB, the Justice Department said on Thursday. The fund was set up by Najib in 2009 to promote economic development.

The department is seeking to seize a total of about 1.7 billion dollars in assets that were bought with misappropriated funds, including a Picasso painting that was given to actor Leonardo DiCaprio and the rights to two Hollywood films.

“This money financed the lavish lifestyles of the alleged co-conspirators at the expense and detriment of the Malaysian people,” acting U.S. Assistant Attorney-General Kenneth Blanco said in a statement.
The jewellery purchases were arranged by Malaysian financier Low Taek Jho, or Jho Low, who was also accused of gifting DiCaprio a 3.2 million dollars Picasso.

A spokesman for DiCaprio on Thursday said that the actor had begun proceedings to transfer ownership of the Picasso to the U.S. government, having in July 2016 “initiated the return” of gifts he had received from financiers connected to the 1MDB case.

According to findings, the jewellery, like the Picasso painting, was purchased with funds traceable to diverted proceeds from a 2013 bond offering by 1MDB.
It also show that the diamond necklace was bought in 2013, just months after 680 million dollars was transferred to the private bank account of Najib in Kuala Lumpur.

The Malaysian government says that money came from a member of the Saudi royal family.
The necklace was purchased from New York jeweller Lorraine Schwartz, who has designed for Beyonce Knowles, Jennifer Lopez and other stars of the entertainment world.
“Need a 18 carrot (carat) pink heart diamond vivid or slightly short of vivid. On diamond necklace urgent,” Low said in a text message to Schwartz in June 2013, the filings said.

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