28-6-2024 (WASHINGTON) In a bid to reach a comprehensive resolution and potentially close the final chapter on the long-running asset forfeiture campaign tied to the 1Malaysia Development Berhad (1MDB) corruption scandal, the United States Department of Justice (DOJ) has entered into a confidential agreement with fugitive financier Jho Low.
According to documents reviewed by reporters and executives familiar with the situation, the DOJ signed a confidential agreement in early June with Low’s family lawyers and their financial trustees, paving the way for a potential global settlement agreement. This agreement aims to “forever resolve United States’ civil, criminal and administrative asset forfeiture actions or proceeding relating to the disposition” of assets tied to the 1MDB scandal.
The agreement involves surrendering assets previously identified by the authorities, as well as those not previously claimed or captured by prosecuting agencies worldwide, under a fresh settlement plan. It represents a concerted effort to bring closure to one of Washington’s longest-running asset forfeiture cases, which former US Attorney General Jeff Sessions described as “kleptocracy at its worst.”
The confidential agreement, signed by Margaret A. Moeser, Acting Chief of the Money Laundering and Asset Recovery section in the Criminal Division of the DOJ, lawyers for the Lows’ financial trustee, and Low’s family lawyer Robin Rathmell of law firm Kasowitz Benson Torres, is tied to the DOJ’s announcement on Wednesday of the recovery of an additional US$100 million in resolving two civil forfeiture cases involving artworks by Andy Warhol and Claude Monet, as well as financial deposits and properties in Singapore and other international locations.
Lawyers involved in the negotiations stated that the agreement, signed on June 3 and 4, also involves other confidential commitments to the US government, which will pursue settlement negotiations with other counterparties, including administrations in other international jurisdictions, to reach a global resolution to the debacle that led to the jailing of former Malaysian Prime Minister Najib Razak, who, along with Low, was the architect of the scandal-ridden state-owned sovereign fund 1MDB.
The latest settlement agreement is the second asset forfeiture deal between the DOJ and Low, following a separate US$700 million deal in October 2019. While the detailed provisions of the Settlement Agreement Letter differ markedly from the DOJ’s statement on Wednesday, it underscores the US government’s determination to bring a comprehensive resolution to the 1MDB affair, which has reverberated across multiple jurisdictions and involved the misappropriation of more than US$4.5 billion in stolen funds, according to US prosecutors.
Despite remaining a fugitive and facing charges in the Eastern District of New York for allegedly conspiring to launder billions of dollars embezzled from 1MDB and violating the Foreign Corrupt Practices Act, as well as charges in the District of Columbia for allegedly conspiring to make and conceal foreign and conduit campaign contributions during the US presidential election in 2012, Low’s legal team has engaged in negotiations with the DOJ to reach a one-time settlement.
Lawyers and financial executives close to the situation noted that the negotiations began in February, with the aim of acknowledging assets known to the US authorities and bringing to the surface previously uncaptured assets under a fresh deal. The DOJ reportedly warmed up to the deal in early May.
