Lady Justice
The U.S. Department of Justice announced that it has successfully reached an agreement to recover an additional $20 million in misappropriated funds linked to the infamous 1Malaysia Development Berhad (1MDB) scandal. This brings the total amount seized in connection with the case to over $1.7 billion, marking a significant milestone in the ongoing global effort to recover funds embezzled from the Malaysian sovereign wealth fund.
In June 2024, the Justice Department reported having already recovered and assisted in the return of approximately $1.4 billion of these misappropriated funds to Malaysia. The latest recovery stems from a civil forfeiture case involving Frank White Jr. and his company, DuSable Capital Management LLC, which is accused of receiving tens of millions of dollars from the stolen funds. White Jr. has agreed to forfeit $20 million in connection with this case.
The 1MDB scandal, which has been scrutinized since 2016, implicated top officials of 1MDB and their affiliates, notably financier Low Taek Jho, better known as Jho Low. This embezzlement operation resulted in the misappropriation of more than $4.5 billion from the fund between 2009 and 2015. The illicit funds were funneled through a network of global financial institutions, with transactions occurring in countries such as the U.S., Switzerland, Singapore, and Luxembourg.
The U.S. government’s efforts, led by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), have been part of a broader initiative to hold individuals accountable for foreign corruption through the Kleptocracy Asset Recovery Initiative. To date, 43 civil forfeiture actions have been filed in U.S. courts, focusing on assets linked to the illicit activities surrounding 1MDB. These assets include luxury properties in major cities, a 300-foot superyacht, fine art by Monet and Van Gogh, and investments in various business ventures, such as a Beverly Hills hotel and the movie production company behind The Wolf of Wall Street.
In addition to the financial forfeiture, DuSable Capital Management has amended its filings under the Foreign Agents Registration Act (FARA) to disclose additional political activities conducted on behalf of the Malaysian government, including lobbying the U.S. government for support on a solar project in Malaysia.
Principal Deputy Assistant Attorney General Brent S. Wible, along with other senior officials from the Justice Department, emphasized the importance of this case in tackling global corruption and facilitating the return of misappropriated assets to the victims of these offenses. The investigation, which has involved numerous countries, is spearheaded by the FBI’s International Corruption Squad, benefiting from significant collaboration with international entities such as the Malaysian Anti-Corruption Commission and law enforcement agencies in the United Kingdom, Luxembourg, and Singapore.
The Justice Department remains committed to pursuing additional assets tied to this sprawling corruption case, underscoring its ongoing efforts to combat international money laundering and asset theft. Individuals with knowledge of potentially illicit financial activities are encouraged to come forward by contacting the department’s Kleptocracy Initiative.
