In one of the most shocking revelations surrounding the 1MDB scandal, a court filing has exposed that US$248 million in stolen funds was channeled to Riza Aziz, the stepson of former Prime Minister Dato' Seri Najib Razak. These funds, allegedly misappropriated through two companies linked to fugitive businessman Low Taek Jho, better known as Jho Low, were spent on gambling, real estate, and Hollywood memorabilia, according to the latest court documents.
The Malaysian sovereign wealth fund, 1MDB, alongside its three subsidiaries, is suing Riza Aziz and two Red Granite companies he controls ie. Red Granite Pictures Incorporated and Red Granite Capital Ltd, over the misuse of funds. In the court filing submitted by Shearn Delamore & Co., the plaintiffs detailed how 1MDB funds were diverted between 2011 and 2012, involving US$10 million sent to Riza's companies through an intricate network of entities connected to Low.
One particularly damning revelation is that part of these misappropriated funds was spent on gambling, although the court filing did not specify the exact amount involved. The same funds were also used to finance Red Granite's production of movies, most notably the Hollywood hit "The Wolf of Wall Street", as well as the purchase of luxury real estate and movie memorabilia.
The suit claims that Riza Aziz, who had control over Red Granite Pictures, was fully aware or should have been aware that the funds received were misappropriated. This lawsuit is part of a broader investigation that alleges a staggering US$4.5 billion was siphoned from 1MDB since its inception in 2009, implicating a vast network of individuals, including Najib Razak, Jho Low, and high-profile Goldman Sachs personnel.
Central to this lawsuit is the role of Good Star Ltd., a company controlled by Low, which received US$700 million from 1MDB’s first US$1 billion fundraising effort in 2009. The court filing outlines how US$10 million from Good Star was funneled into Red Granite's operating account, managed by Riza Aziz.
Furthermore, another US$238 million was misappropriated in 2012 when 1MDB engaged Goldman Sachs to raise funds through two bond issuances amounting to US$3 billion. The funds were siphoned into a Swiss bank account belonging to a fictitious company called Aabar Investments PJS Ltd., created by Low to facilitate the fraud. From there, the US$238 million was transferred to Riza and his companies over several months in 2012.
The court has indicated that several key witnesses will be called upon to shed light on the inner workings of this elaborate scheme. Among them, 1MDB’s former CEO Shahrol Azral Ibrahim Halmi is expected to provide an overview of the key figures and entities involved, while the fund’s former general counsel Jasmine Loo will testify on the documentation process for the fraudulent investments. The statement indicated that liquidator Richard Templeman would clarify the monetary transactions during the Good Star Phase and Aabar Phase, as well as track the misappropriated funds.
The plaintiffs are seeking full accountability from Riza and his companies, either through a declaration of liability or the repayment of the misappropriated funds based on unjust enrichment.
This latest court filing underscores the enormity of the 1MDB scandal and the extent to which public funds were used for personal enrichment, gambling, and the glitz of Hollywood.
By: Kpost
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