Ngebray.com,- Global investigators believe billions of dollars were misappropriated from Malaysian economic development fund, 1Malaysia Development Bhd (1MDB). The are parties named in allegations related to 1MDB, and all those named have denied wrongdoing, except for Middle Eastern businessman Khadem Al Qubaisi.
The 1MDB scandal is one of the biggest unpledged white collared crimes ever. Investigators say it involves unless ten countries from North America to the Middle East to Asia. It also allegedly includes New York and Beverly Hills real state. Monet and van Gogh arts works, Las Vegas gambling and the funding of Martin Scorsese’s, The Wolf of Wall Street. It allegedly started soon after Malaysian Prime Minister Najib Rajak set up 1MDB in 2009 to develop the country’s economy.
The US Justice Department alleges the fraud had three main phases. In 2009 1MDB entered a joint venture with a private Saudi oil company. Malaysia pledged funds to the venture. Prosecutors say more than $1 billion was diverted to a Swiss bank account controlled by Malaysian financier, Jho Low. The money was also allegedly used by Mister Low and others to buy a Beverly Hills hotel, a private jet, and more than $25 million for casinos.
In 2012, one NDB issued $3.5 billion in bonds through Goldman Sachs. Prosecutors say about $1.4 billion of that was diverted to a Swiss bank account belonging to a British Virgin Islan entity. It was set up by middle-eastern business man Khadeem Al Kabazee and an employee. The money was allegedly used by real estate, finance the Wolf of Wall street, and fund other spending benefiting Mr. Al Kabazee, Mr. Low, and Riza Aziz, the Malaysian Prime Minister’s step-son. In 2013, 1MDB issued $3 billion more in bonds through Goldman Sachs. Prosecutors say more that $1.3 billion of that was diverted to a Singapore bank account held by a British Virgin Islands entity, allegedly controlled by an associate of Mr. Low. Prosecutors allege they used much of that money to buy real estate and including works by Clade Monet and Vincent van Gogh. According Malaysian investigation documents $680 million of that was also allegedly sent to a personal bank account of Mr. Najib the Malaysian Prime Minister. Mr. Najib and 1MDB have denied wrong-doing and pledged to cooperate with investigations. Malaysia’s Attorney General cleared Mr. Najib of wrongdoing and said money sent to his account was a legal donation from Saudi Arabia and that most was returned. Mrs. Low and Aziz has denied wrong-doing. Mr. Aziz’s film company, Red Granite Pictures, has said it has no reason to believe the source of its financing was irregular.
Mr. Al Kabazee, who is being detained by Abu Dhabi authorities in connection to it’s investigations into one 1MDB related affairs, hasn’t commented. Goldman Sachs says he did nothing wrong.
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