Rights ligitation firm starts 1MDB investigations in the US

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Scott+Scott, Attorneys at Law, LLP (Scott+Scott) said it has commenced an investigation into the 1MDB Global Investments’ private bond offerings in the United States.

The private bonds offerings are “OGIMK 4.4” maturing on 3/9/2023 and “TIAMK 5.99” maturing on May 11, 2022.

Scott+Scott is a national shareholder and consumer rights litigation firm.

1MDB Global Investments Limited is a debt issuing vehicle. The company is based in Malaysia.

Scott+Scott’s investigation is to determine whether Goldman Sachs (“Goldman”), two Malaysian citizens (Riza Aziz, step-son of the Malaysian Prime Minister, and Aziz’s close friend, Jho Low), and certain other persons and entities wrongfully converted assets belonging to the 1MDB Malaysian state investment fund.

The statement from Scott+Scott said: “If you are a bondholder of one of the offerings underwritten by Goldman pursuant to the 1MDB fund, you are encouraged to contact Scott+Scott for additional information.”

It further said the wrongful diversion of assets from the 1MDB fund, a trust created to boost economic investment and fund infrastructure for the people of Malaysia, has caused a political crisis.

“That crisis threatens to upend that country’s ruling political party, and has adversely impacted the value of over $6.5 billion face value of bonds issued by 1MDB and originally placed by Goldman.”

Scott+Scott said this recommendation is based on press reports concerning the fraud and the contents of civil forfeiture complaints filed by the Department of Justice (DOJ) in connection with the DOJ’s efforts to recover certain assets located in the U.S. that were purchased with money improperly diverted from the 1MDB fund (the DOJ Actions).

The current Malaysian government created the 1MDB fund in 2009 as a sovereign wealth fund with a broad mandate to invest assets and finance infrastructure development projects for the benefit of the people of Malaysia.

However, based on information collected from press reports and the DOJ Actions, it appears that billions of dollars have been misappropriated from the 1MDB Fund by friends or family members (including defendants Low and Aziz) of the current Malaysian prime minister (Najib Razak), said the media release.

Goldman and its top Southeast Asia banker at the time, Timothy Leissner, helped establish the corporate predecessor of 1MDB in 2008, and worked with Mr. Low in his role as an “adviser” to 1MDB.

Between 2009 and 2011, according to the DOJ Actions, it appears that more than $1 billion was improperly diverted from the 1MDB fund to various entities, with the Wall Street Journal reporting that 1MDB “was used by the prime minister as a political slush fund and by associates of his to buy more than $1 billion of real estate, art and other luxuries from London to Beverley Hills, California.”

Many of these highly suspicious asset transfers were funneled through a small, private Swiss bank known as BSI SA (BSI), an entity that Swiss regulatory authorities have since effectively shut down because of BSI’s involvement in the misappropriation of 1MDB monies.

What You Can Do

Scott+Scott advised the IMDB Global bondholders that they may make legal claims against Goldman and the other persons and entities in involved in the offering.

This is pursuant to the wrongful conversion of assets from the 1MDB fund.

“If you wish to discuss this investigation or have questions about this notice or your legal rights, please contact attorney Scott Jacobsen at (800) 404-7770 or (212) 519-0521, or at sjacobsen@scott-scott.com.

About Scott+Scott, Attorneys at Law, LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.

CONTACT: Scott Jacobsen
Scott+Scott, Attorneys at Law, LLP
(800) 404-7770 or (212) 519-0521
sjacobsen@scott-scott.com