London Daily

Focus on the big picture.
Saturday, May 31, 2025

Fugitive Malaysian tycoon Jho Low nears US$1 billion settlement with US over 1MDB scandal, reports say

Fugitive Malaysian tycoon Jho Low nears US$1 billion settlement with US over 1MDB scandal, reports say

Deal would be biggest recovery of funds under US government’s Kleptocracy Asset Recovery Initiative and resolve more than dozen forfeiture lawsuits. Settlement will not include an admission of guilt or wrongdoing and will not be tied to criminal action against Low
Fugitive Malaysian financier Jho Low, widely viewed as the mastermind behind the multibillion dollar plunder of the 1MDB state fund, is poised to forfeit some US$1 billion to the US Department of Justice in a tentative settlement in civil forfeiture cases surrounding the scandal, reports said on Thursday.

Bloomberg, The New York Times and Malaysian business daily The Edge Markets reported the imminent settlement deal, citing sources with knowledge of the matter.

The reports said the deal will not include an admission of guilt or wrongdoing and would not be tied to criminal action against him.

The settlement could be filed in a California court as soon as this week, according to Bloomberg. The settlement would be the biggest recovery of funds under the US government’s Kleptocracy Asset Recovery Initiative. The Bloomberg source said the settlement would resolve more than a dozen forfeiture lawsuits.

The Department of Justice first announced the filing of civil forfeiture complaints in 2016, during the era of President Barack Obama.

Then attorney general Loretta E. Lynch said at the time that the action was taken as a warning that it would not allow the US financial system to be used as a conduit for corruption by officials around the world.

A Department of Justice spokesman declined to comment when contacted by This Week in Asia on Thursday. Low's New York-based spokesman did not respond to a request for comment.

The reports said the settlement will involve the recovery of funds from the sale of properties in Los Angeles, London and New York, as well as a Bombardier plane currently impounded in Singapore.

The US$1 billion amount is also expected to include a large chunk of investment in private equity.

The development comes amid an ongoing criminal trial involving Najib Razak, the former Malaysian prime minister who founded 1MDB in 2009 with Low’s help.

Najib, defeated in elections last year partly because of allegations of his involvement in the plunder, is facing 42 charges for his role in losses at the fund and companies linked to it.

Prime Minister Mahathir Mohamad, the 94-year-old ex-leader who returned to the helm after defeating Najib, has said that recouping the 1MDB’s losses – estimated to be over US$4.5 billion – is one of his government priorities.

In court, Najib’s lawyers have sought to paint the 66-year-old as having been duped by Low into believing that some US$681 million revealed to be in his personal accounts came from donations from the Saudi royal family.

Low has denied wrongdoing but has said he will not return to face justice in Malaysia because he has no faith in the justice system under Mahathir’s government.

The cherubic businessman is a wanted man in Malaysia and neighbouring Singapore – one among several jurisdictions that are involved in the 1MDB investigations.

Malaysia is separately seeking some US$3.3 billion in compensation from Goldman Sachs, the US investment bank which raised bonds for 1MDB.

The country’s attorney general, Tommy Thomas, said in an interview with Nikkei Asian Review earlier this month that two rounds of talks have taken place between his officials and the US bank, with the gulf remaining “very wide”.

17 current and former Goldman executives are among a slew of individuals who are facing criminal charges for their role – direct or indirect – in the saga.

Others include the Najib-era chief of the treasury, Irwan Serigar Abdullah, and Arul Kanda Kandasamy, a former 1MDB chief executive.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×