Malaysia Files 22 Civil Suits to Recover 1MDB Losses

Among those named in the lawsuits are Deutsche Bank, Coutts, JPMorgan, former prime minister Najib Razak, and Malaysian financier Jho Low.

Malaysia’s MoF (Ministry of Finance) has announced that 1MDB and SRC International have filed a total of 22 civil suits in a bid to try to recover more than MYR 96.6 billion (USD 23.5 billion) in losses suffered by the state investment fund.

Among those named in the lawsuits – which were filed on Friday (7 May) – are Deutsche Bank, Coutts & Co, JPMorgan Switzerland, which are being sued for their alleged roles as “conduits” for 1MDB.

In addition, the writs name more than 20 individuals including Malaysia’s former prime minister Najib Razak, who is appealing a 12 year jail sentence and still faces three more trials involving 1MDB and other government entities, as well as Malaysian financier Jho Low, who is believed to have been the mastermind the 1MDB scandal.

Six writs filed by 1MDB are against nine entities, including two foreign financial institutions and 25 individuals. Sixteen writs filed by SRC are against eight entities and 15 individuals for various wrongdoings.

The wrongdoings include breach of contractual, statutory, common law and fiduciary duties; breach of trust; fraud; conspiracy to defraud; fraudulent misrepresentation; fraudulent breach of duties and trust; abuse of power; breach of fiduciary duties in public office; and dishonest assistance in misappropriation of funds.

“1MDB and SRC contend that these entities and/or individuals have been unjustly enriched by wrongfully receiving monies from 1MDB or SRC,” the MoF said.

The government will not rest until all those involved are made fully accountable for the wrongdoings caused to Malaysia through their involvement in 1MDB and/or SRC, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“Following significant and successful settlements with Goldman Sachs, AmBank Group and Deloitte PLT, the government’s recovery efforts are now focused on pursuing other wrongdoers who have caused losses to 1MDB and/or SRC during the execution of their duties.”

The MoF said all proceeds from the 1MDB asset recovery efforts, including any future settlements, are deposited into the Asset Recovery Trust Account under the custody of the Accountant General’s Department of Malaysia.

“These settlements will not affect or compromise Malaysia’s claims against other wrongdoers for the losses caused to 1MDB and SRC, and they will continue to be pursued through both the criminal and civil justice systems,” it said.

According to the Financial Times, the filings were made as Malaysia was about to hit a statute of limitations.

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