Malaysia 1MDB scandal

Model Miranda Kerr hands over US$8.1 million in jewellery linked to Malaysia 1MDB corruption case

PUBLISHED : Tuesday, 27 June, 2017, 3:19pm
UPDATED : Tuesday, 27 June, 2017, 11:02pm

Australian model Miranda Kerr has handed over US$8.1 million worth of jewellery to the US justice department after prosecutors said the items were bought for her by a Malaysian financier with stolen government money.

Kerr retrieved the gifts – including a US$3.8 million 8.88 carat diamond pendant from New York-based designer Lorraine Schwartz – from a safe-deposit box in Los Angeles, her spokesman said.

“From the start of the inquiry, Miranda Kerr cooperated fully and pledged to turn over the gifts of jewellery to the government,” the spokesman told Dow Jones news wires.

“Ms Kerr will continue to assist with the inquiry in any way she can.”

More than US$4.5 billion has been stolen from a Malaysian state fund, 1MDB, which was set up by the prime minister, Najib Razak, who denies any wrongdoing.

Prosecutors allege nearly US$30 million misappropriated from the fund was also used to buy jewellery for the wife of “Malaysian Official 1”, which refers to Najib.

The department is seeking to seize more assets, including a luxury yacht, owned by financier Jho Low and his gift of some of the jewellery to Kerr in 2014.

The model, who owns her own jewellery line with prices starting at US$69, follows the example of actor Leonardo DiCaprio, whose spokesman said had turned over US$3.2 million in artwork, including a Picasso painting, gifted to him by Jho Low.

The rights to two Hollywood films, The Wolf of Wall Street and Dumb and Dumber To, have also been seized.

The films were produced by Red Granite, a firm founded by Najib’s stepson, Riza Aziz.

US authorities have not charged Jho Low, Najib or Aziz in the civil complaint, while Kerr and DiCaprio have not been accused of any crime.

1MDB said on Friday that it had never been contacted in relation to the case.