In a significant development in the ongoing 1Malaysia Development Bhd (1MDB) scandal, the Swiss Federal Criminal Court has convicted two executives from PetroSaudi, Patrick Mahony and Tarek Obaid, for their roles in embezzling over US$1.8 billion from the Malaysian fund [cd138f0d]. Obaid received a seven-year prison sentence, while Mahony was sentenced to six years. The fraudulent scheme involved creating a false impression of Saudi government backing for their venture in 2009, leading to the initial defrauding of US$1 billion from the fund, followed by an additional US$830 million between 2010 and 2011 [cd138f0d].
This conviction adds to the growing list of legal repercussions stemming from the 1MDB scandal, which has implicated numerous high-profile figures, including former Malaysian Prime Minister Najib Razak and fugitive financier Jho Low [cd138f0d]. Meanwhile, Singapore authorities continue to pursue Jho Low, who remains a fugitive and is facing charges in absentia since 2016. The country has issued a warrant for his arrest and has seized approximately S$164 million of 1MDB-related assets [3a934b18].
In a related development, the US Department of Justice reached a settlement with Jho Low, aiming to resolve various asset forfeiture actions tied to the scandal. This agreement includes the recovery of an additional US$100 million and the liquidation of assets such as artworks and a luxury flat in Paris [0aa2b9a1]. Recently, a federal judge in Los Angeles ordered Low to surrender diamonds worth US$1.8 million, deemed as proceeds from the 1MDB fraud [8f3c33d1].
The 1MDB scandal continues to unfold, revealing the extensive international corruption and financial crime that has affected Malaysia and beyond, as authorities in multiple countries work to hold those involved accountable [f10e7396].