At the 15th Annual OffshoreAlert North American Conference on Financial Intelligence & Investigations, Tom Ajamie, Managing Partner, Ajamie LLP, and Louis Burke, Founder, Louis F. Burke P.C., examine the The 1Malaysia Development Berhad Scandal (1MDB).
The 1MDB scandal centers on a Malaysian government-run company formed for the purpose of driving strategic initiatives for long-term economic development. It is alleged that Malaysia’s Prime Minister, Najib Tun Razak and others transferred over RM 19.25 billion (approximately $4.5 billion) from 1MDB to numerous personal bank accounts.
Utilizing their expertise in financial securities law, asset recovery, and class action lawsuits, Ajamie and Burke discuss allegations of fraud and corruption involving 1MDB, with a particular focus on 1MDB’s dealings with Goldman Sachs and the $3 billion in bonds issued by the financial organization in 2013. In addition, Ajamie and Burke discuss the connection between 1MDB and the film, “The Wolf of Wall Street,” as well as a recent settlement reached between 1MDB and the government of Abu Dhabi worth $1.2 billion.
The FBI has initiated investigations into 1MDB’s money laundering accusations, including the role played by U.S. financial organization Goldman Sachs in the facilitation of these alleged acts. According to its public filings, 1MDB is roughly RM 42 billion (approximately $11.73 billion) in debt, some of which resulted from a $6.5 billion in bonds issued by Goldman Sachs. Goldman Sachs is believed to have earned as much as $600 million in fees from its dealings with 1MDB. In addition, the United States Justice Department has requested that investment banks such as Wells Fargo, JPMorgan Chase & Co., and Deutsche Bank AG produce records that may be related to the alleged improper bank transfers involving 1MDB.