1MDB scandal: Jho Low not off the hook despite US$1 billion settlement

The US Justice Department says the fugitive Malaysian financier still faces criminal charges in the US, and it will not tolerate its financial system being used for ill gotten gains

Low says he is ‘very pleased’ with the comprehensive settlement, which does not constitute an admission of guilt or liability from him

Reading Time:3 minutes

Fugitive Malaysian financier Jho Low, pictured in 2015. Photo: AP

Published: 9:40am, 31 Oct 2019Updated: 5:46pm, 17 Dec 2019

The United States Justice Department (DOJ) on Wednesday said its recovery of US$1 billion in funds linked to the 1MDB corruption scandal from the fugitive financier Jho Low – Washington’s biggest civil forfeiture ever – is a stern warning that its prosecutors will not tolerate the American financial system being used to launder ill gotten gains.

The development marks a major milestone in a colourful saga that stretches back to 2015, and currently involves investigations in multiple jurisdictions over plunder at the 1 Malaysia Development Berhad fund amounting to over US$4.5 billion.

Along the way, former Malaysian prime minister and Low’s ex-associate Najib Razak lost power, partly due to his alleged involvement in the theft, Low has gone into hiding, and Goldman Sachs – the US investment bank that raised bonds for the tainted fund – is mired in one of its worst ever crises as it faces the prospect of a multibillion payout to the Malaysian government.

The saga became a global talking point after prosecutors in Malaysia and the US revealed that funds allegedly illicitly moved from 1MDB to Najib and Low were used to buy luxurious jewels, a super yacht, a private jet – and even fund the Hollywood movie Wolf of Wall Street.

In a statement, the DOJ confirmed earlier reports that it had reached a settlement with the businessman that does not include an admission of guilt or wrongdoing, and is separate from criminal proceedings that are pending against him.