In a major development in the long-running effort to recover billions siphoned from 1Malaysia Development Berhad (1MDB), the High Court has ordered Eric Tan Kim Loong, the close associate of fugitive financier Low Taek Jho, and Low May Lin, Jho Low’s sister, to pay a combined total of nearly US$2.8 billion (RM12.4 billion). The ruling, marks another significant civil judgment against individuals linked to the largest financial scandal in Malaysian history.
Justice Mahazan Mat Taib delivered the decision after both Tan and May Lin failed to respond to court papers, participate in proceedings, or file any form of defence. Their absence meant the evidence presented by 1MDB — including fund flow charts, bank records, corporate documents, and witness testimony — went entirely unchallenged, paving the way for a default judgment.
Najib Razak had de facto control over 1MDB, court finds
Central to Justice Mahazan’s reasoning were findings that Datuk Seri Najib Razak, who served as both prime minister and finance minister during the period of misappropriation, exercised de facto control over 1MDB’s most significant financial decisions.
The court also found that Jho Low, despite having no formal role in the investment fund, operated as Najib’s authorised proxy and shadow director, directing financial transactions, manipulating corporate structures, and controlling offshore vehicles. These findings further cement the official narrative that Jho Low’s influence was systemic, deliberate, and crucial to the siphoning of billions.
“The identities of the recipients, the structure of the transactions, and the roles of Jho Low and Datuk Seri Najib establish that the funds were tainted proceeds,” Justice Mahazan said. Her comments reinforce the long-held assertion that the misappropriation was not the result of isolated rogue behaviour, but part of a coordinated, multi-year scheme.
The sums involved: billions diverted, millions received
The court ordered:
- Eric Tan Kim Loong to pay US$2,795,333,000 (RM11.55 billion)
- Low May Lin to pay US$809,319 (RM3.3 million)
- RM500,000 in costs to 1MDB
According to report, Tan was identified as the beneficial owner of the offshore Alsen Chance and Blackstone accounts used to receive misappropriated funds. The sheer size of the sum — nearly US$2.8 billion — represents one of the clearest legal acknowledgements of Tan’s pivotal logistical role in the scandal.
May Lin’s involvement was more modest in monetary terms but still central to the scheme. She received US$809,319 through four transfers from her father, Low Hock Peng. As reported by Scoop, these transfers lacked commercial justification and originated from funds misappropriated during the Good Star phase. Her role was described as fitting within a “family-based concealment structure.”
Four phases of misappropriation
Evidence presented — and accepted unopposed — detailed the now-well-known four phases through which billions were siphoned:
- Good Star (2011)
- Aabar (2012)
- Tanore (2013)
- Options Buyback (2014)
Each phase involved complex offshore entities, rapid fund transfers, and structures designed to obscure the true beneficiaries. Testimony from former 1MDB CEO Shahrol Azral Ibrahim Halmi, financial fraud specialist Richard Templeman, and asset recovery expert Angela Barkhouse was especially crucial,.
A long trail of default judgments
This ruling follows a series of earlier judgments in the same civil action. As recorded in Malay Mail, 1MDB previously obtained default judgments against:
- Jho Low, his father, and his brother in November 2022
- Low’s mother, Goh Gaik Ewe, in May 2024
Today’s ruling means every immediate member of Jho Low’s family, along with his chief financial associate, has now been held liable in the Malaysian courts.
While civil judgments do not guarantee repayment, they significantly bolster Malaysia’s international recovery efforts by establishing legal liability and tracing fund flows — strengthening the global case against Jho Low’s network.
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