Loo Ai Swan, 1MDB Scheme, Washington D.C., 2024

The 1MDB scandal has claimed another victim as the Justice Department recovers nearly $85 million in assets linked to the scheme. Loo Ai Swan, the former general counsel of 1Malaysia Development Berhad (1MDB), Malaysia’s sovereign investment development fund, has agreed to return artwork by Pablo Picasso and a financial account in Switzerland valued at $1.8 million.

The artwork in question includes a Picasso piece, while the financial account in Switzerland is also under Loo’s control. This agreement resolves the civil forfeiture action against the assets, which are collectively valued at approximately $1.8 million. However, the agreement does not release any criminal claims against Loo.

The forfeiture of other artwork and jewelry allegedly purchased by Low Taek Jho, also known as Jho Low, resolves three additional civil forfeiture cases filed in the U.S. District Court for the Central District of California. The collective value of these assets, together with the Loo assets, is estimated to be nearly $85 million.

Low faces criminal charges in the Eastern District of New York for allegedly conspiring to launder billions of dollars embezzled from 1MDB and for conspiring to violate the Foreign Corrupt Practices Act. He also faces charges in the District of Columbia for allegedly conspiring to make and conceal foreign and conduit campaign contributions during the United States presidential election in 2012.

The Justice Department has previously returned or assisted in the return to Malaysia of over $1.4 billion in assets associated with the international money laundering, embezzlement, and bribery scheme. The FBI’s International Corruption Squads in New York City and Los Angeles, along with the IRS Criminal Investigation Los Angeles Field Office, have been investigating the case.

Prosecutors from the Criminal Division’s Money Laundering and Asset Recovery Section, along with Assistant U.S. Attorney Jonathan Galatzan, have been working on the case. Significant assistance has also been provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police, the Malaysian Anti-Corruption Commission, and other international partners.

The 1MDB scandal has been a major focus of international attention, with officials working to recover billions of dollars in embezzled funds. This latest development marks another significant step in the recovery effort.

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