DOJ reaches settlement, recovers over US$60 million from Riza Aziz

In a statement published on its website, DOJ said the funds were laundered through financial institutions in several jurisdictions, including the United States (US), Switzerland, Singapore and Luxembourg.

“With the conclusion of this settlement, together with the prior disposition of other related forfeiture cases, the US will have recovered or assisted in the recovery of nearly US$1.1 billion (RM4.6 billion) in assets associated with the 1MDB international money laundering and bribery scheme.

"This represents the largest recovery to date under the department’s Kleptocracy Asset Recovery Initiative and the largest civil forfeiture ever concluded by the Justice Department,” said the statement.

The assets subjected to the settlement agreement including the sale proceeds of high-end real estate acquired in Beverly Hills as well as a luxury condominium in New York City; the sale proceeds of an investment made by Riza Shahriz in a Kentucky maintenance company; a luxury London townhome; and a promotional poster for the 1927 motion picture film “Metropolis.”

Acting Assistant Attorney General of the DOJ’s Criminal Division, Brian C. Rabbit said, as alleged in the forfeiture complaints, Riza Shahriz and others collectively laundered billions of dollars pilfered from 1MDB, an investment fund intended to benefit the Malaysian people.

He said, Riza Shahriz and his co-conspirators allegedly diverted these funds for their own benefit and used them to acquire luxury real estate in New York and London and to make personal investments.

"The forfeiture of these assets will add to the almost US$1.1 billion stolen from 1MDB that the US Justice Department has so far helped recover and return to the Malaysian people. This forfeiture sends a clear signal that the department will not allow wrongdoers to use the US financial system to launder the proceeds of their illegal activity,” he was quoted as saying in the statement.

Meanwhile, the DOJ also quoted US Attorney Nick Hanna of the Central District of California as saying that with more than US$1 billion forfeited as a result of the Justice Department's 1MDB-related forfeiture cases, they would continue to shed light on the massive fraud and money laundering scheme that brazenly stole public funds belonging to the people of Malaysia.

He said the high-end properties across the nation that have now been seized and forfeited demonstrate their commitment to preventing corrupt actors from using the US as a place to hide stolen riches.

In the statement, the DOJ also expressed appreciation for the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.

On May 13, Riza Shahriz was discharged but not amounting to an acquittal by the Kuala Lumpur Sessions Court on five money laundering charges involving US$248 million (RM1.25 billion), allegedly misappropriated from 1MDB funds.

Judge Azman Ahmad made the decision after an agreement arrived between the prosecution and the film producer under the terms of which the federal government will receive a substantial sum running into several millions of ringgit.

On May 19, the Kuala Lumpur High Court allowed the government’s application to forfeit almost RM600,000 in cash belonging to Riza Shahriz that was seized by the police two years ago.