In a surprising turn of events, the Malaysian High Court was informed on Monday that American media icon Kim Kardashian and renowned musician Pharrell Williams were among the recipients of funds linked to the infamous 1Malaysia Development Berhad (1MDB) scandal. These funds, totaling a staggering US$2.43 million, were allegedly funneled to them by the now-fugitive businessman Low Taek Jho, more commonly known as Jho Low.
The revelations were made on the first day of the US$6.59 billion civil lawsuit that pits 1MDB against its former board member, Tan Sri Mohd Irwan Serigar, and its former CEO, Arul Kanda Kandasamy. The lawsuit, which seeks to hold the former executives accountable for the significant losses suffered by the state-owned investment fund, began with testimony from Richard Templeman, a financial fraud investigator. Templeman, who appeared via video link from London, shared details of his probe that unveiled a series of dubious financial transactions involving shell companies linked to Jho Low.
Templeman disclosed that between August 11 and August 17, 2011, a total of US$2,025,000 was transferred from an account held by Good Star Ltd to an account under the name Talamasca Inc. Good Star Ltd, a shell company allegedly controlled by Jho Low, has been identified as one of the vehicles he used to misappropriate over US$1 billion intended for 1MDB’s investments. The funds, however, were reportedly diverted for his personal benefit. According to Templeman, Talamasca Inc. has ties to Pharrell Williams, although the exact nature of these ties remains unclear.
The investigator also testified that Kim Kardashian, along with her then-husband, NBA player Kris Humphries, received a sum of US$406,000. However, Templeman could not specify the reason for this payment. This transaction, like many others involving Jho Low, raises questions about the extent of 1MDB’s misappropriated funds and the involvement of high-profile celebrities.
Templeman went on to explain further transactions involving Alsen Chance, a company registered in the British Virgin Islands. This company was owned by Tan Kim Loong, a known associate of Jho Low, who served as its sole director and shareholder. Large sums of money were funneled into Alsen Chance following a 2012 bond issuance by 1MDB, which raised US$907.5 million. Despite 1MDB’s already precarious financial situation due to prior illicit transfers by Good Star Ltd, the Malaysian government-backed bond raised funds that were subsequently deposited into an account at Falcon Private Bank. From there, a sum of US$576,943,490 was transferred to an Aabar BVI account, another shell company allegedly controlled by Jho Low.
The web of financial deceit extended further to implicate Datuk Seri Najib Razak’s stepson, Riza Aziz. Templeman testified that Riza became the beneficiary of two properties in the United States, valued at US$55 million. These properties were financed with money that had been transferred to his film production company, Red Granite Capital. The money trail, as mapped out by Templeman, matched the findings of investigations conducted by the United States Department of Justice, providing strong corroboration for his claims.
Moreover, Templeman revealed that US$41 million from the Red Granite account was funneled back into Alsen Chance. From there, another payment of US$250,000 was made to Kim Kardashian’s company, Kimsaprincess, in 2012. This repeated financial connection to Kardashian only adds to the intrigue surrounding the celebrities caught in the tangled web of the 1MDB scandal.
The ongoing trial, presided over by High Court Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan, marks the first day of what promises to be a contentious legal battle. The lawsuit filed by 1MDB in May 2021 accuses both Arul Kanda and Tan Sri Mohd Irwan of gross negligence and breach of trust, which allegedly resulted in the company suffering losses amounting to US$1.83 billion. These losses were tied to investments initially made in 1MDB-Petrosaudi Ltd, which were later converted into stakes in Brazen Sky Ltd and subsequently into investments in the Bridge Global Fund.
1MDB further alleges that Arul Kanda and Tan Sri Mohd Irwan orchestrated a breach of trust and conspiracy by misappropriating US$3.5 billion from 1MDB and channeling the money to Aabar Investments PJS Ltd, a shell company that falsely claimed to be a subsidiary of the International Petroleum Investment Company (IPIC). Another US$1.265 billion was later paid to IPIC in May 2017, allegedly as part of this scheme.
Additionally, 1MDB claims that Tan Sri Mohd Irwan conspired with Arul Kanda to implement an employment extension agreement that resulted in a payout of RM2.91 million to Arul Kanda. This agreement, according to the allegations, was executed with complete disregard for the interests of 1MDB, further exacerbating the financial damage to the company.
The state investment fund is now seeking a massive RM30.91 billion from the former executives as compensation for the alleged breaches of duty and trust. The fund also demands the return of the RM2.91 million paid to Arul Kanda in relation to the controversial employment extension agreement.
As the trial progresses, more evidence and testimonies are expected to unfold, shedding light on the extent of the financial mismanagement and uncovering more details about how one of Malaysia’s largest scandals impacted not only the financial sector but also high-profile figures across the globe. The proceedings will continue, with both sides preparing to present further arguments and evidence to bolster their respective cases.
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