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« Susan Divers: Tracing corporate train wrecks back to toxic tone at the top | Main | DOJ seeks forfeiture of $1 billion linked to Malaysia state fund »
Wednesday
Jul202016

What did the alleged 1MDB looters buy with $1 billion? Here's the list

The DOJ alleged in a civil forfeiture complaint Wednesday that officials at Malaysia's sovereign wealth fund 1MDB and the step son of the Malaysia prime minister diverted more than $3.5 billion from the fund.

They laundered the money through a series of complex transactions and fraudulent shell companies with bank accounts in Singapore, Switzerland, Luxembourg, and the United States, the DOJ said.

"These transactions were allegedly intended to conceal the origin, source and ownership of the funds, and were ultimately processed through U.S. financial institutions and were used to acquire and invest in assets located in the United States," according the 144-page civil forfeiture complaint.

The assets -- valued at about $1 billion -- allegedly included high-end real estate and hotels in New York and Los Angeles, a $35 million private jet, art works by Vincent Van Gogh and Claude Monet, an interest in the music publishing rights of EMI Music, and the production of the 2013 film The Wolf of Wall Street.

This is a case "where life imitated art,” Assistant AG Leslie Caldwell said Wednesday.

“The associates of these corrupt 1MDB officials are alleged to have used some of the illicit proceeds of their fraud scheme to fund the production of The Wolf of Wall Street, a movie about a corrupt stockbroker who tried to hide his own illicit profits in a perceived foreign safe haven," Caldwell said.

The DOJ said the assets should be forfeited under 18 U.S.C. § 981(a)(1)(C) because they were "derived from violations of U.S. law . . . in one or more money laundering offenses in violation of 18 U.S.C. §§ 1956 and/or 1957."

*     *     *

Here's the list of assets allegedly bought with money diverted from 1MDB that the DOJ wants forfeited:

The Wolf of Wall Street Motion Picture Including any rights to profits, royalties and distribution proceeds owed to Red Granite Pictures, Inc. or its affiliates and/or assigns. Red Granite Pictures, Inc. owns the movie.

L’Ermitage Hotel All right and title to the real property commonly known as 9291 Burton Way, Beverly Hills, California 90210, including the L’Ermitage Hotel, including all appurtenances, improvements, and attachments thereon.

Hillcrest Property All right and title to the real property located in Beverly Hills, California1 owned by 912 North Hillcrest Road (BH), LLC, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

Park Laurel Condo All right and title to the real property located in New York, New York owned by Park Laurel Acquisition LLC, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

Bombadier Jet All right and title to Bombardier Global 5000 aircraft bearing manufacturer serial number 9265 and registration number N689WM, with two Rolls Royce engines bearing manufacturer’s serial numbers 12487 and 12488, including all appurtenances, improvements, and attachments thereon, all aircraft logbooks, and all leases, rents, and profits derived therefrom.

Time Warner Penthouse All right and title to the real property located in New York, New York owned by 80 Columbus Circle (NYC) LLC, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

Time Warner Storage Unit The Time Warner Penthouse includes all right and title to the real property commonly known as SU-11, New York, New York, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

Oriole Mansion All right and title to the real property located in Los Angeles, California owned by Oriole Drive (LA) LLC, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

Greene Condo All right and title to the real property located in New York, New York owned by 118 Greene Street (NYC) LLC, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

EMI Music Royalties Any and all rights, including copyright and intellectual property rights, as well as the right to collect and receive any profits, royalties, and proceeds of distribution owned by or owed to JW Nile (BVI), Ltd.; JCL Media (EMI Publishing Ltd.); and/or Jynwel Capital Ltd., relating to EMI Music Publishing Group North America Holdings, Inc. and D.H. Publishing L.P.

Park Lane Hotel All right to and interest in Symphony CP (Park Lane) LLC, a Delaware limited liability company, owned, held or acquired, directly or indirectly, by Symphony CP Investments LLC and Symphony CP Investments Holdings LLC, including but not limited to any interest in the real property and appurtenances located at 36 Central Park South, New York, New York, 10019, known as the Park Lane Hotel, any right to collect and receive any profits and proceeds therefrom, and any interest derived from the proceeds invested in Symphony CP (Park Lane) LLC by Symphony CP Investments LLC or Symphony CP Investments Holdings.

Walker Tower Penthouse All right and title to the property located in New York, New York owned by 212 West 18th Street LLC, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

Laurel Beverly Hills Mansion All right and title to the property located in Beverly Hills, California, owned by Laurel Beverly Hills Holdings, LLC, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

Hillcrest Property #2 All right and title to the property located in Beverly Hills, California owned by 1169 Hillcrest Road LLC, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

Van Gogh Drawing One pen and ink drawing entitled La maison de Vincent a Arles by Vincent Van Gogh.

Claude Monet Painting #1 One painting entitled “Saint-Georges Majeur” by Claude Monet.

Claude Monet Painting #2 One painting entitled “Nympheas avec Reflets de Hautes Herbes” by Claude Monet.

Qentas Townhouse All right and title to the property located in London, United Kingdom (“U.K.”), SW1W 0JR, owned by Qentas Holdings Limited, including all appurtenances, improvements, and attachments thereon, as well as all leases, rents, and profits derived therefrom.

Qentas Townhouse Parking Space The Qentas Townhouse includes all right, title, and interest in the leasehold for Parking Space 2 at the Qentas Townhouse, as well as all sub-leases, rents, and profits derived therefrom.

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Richard L. Cassin is the publisher and editor of the FCPA Blog. He'll be the keynote speaker at the FCPA Blog NYC Conference 2016.

Reader Comments (1)

Wow, quite a list! Thank you to you and your staff for pursuing this. I research nonprofits, and I am wondering if you have found any evidence of this money being channeled through US nonprofit 501(c) entities? Thanks.
-Chris Thompson, Ph.D.
Director of Research
BoardSource
chris.thompson@boardsource.org
https://www.boardsource.org/eweb/
July 21, 2016 | Unregistered CommenterChris Thompson
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