The Justice Department today filed civil forfeiture complaints seeking to recover more than $1 billion that U.S. officials believe was misappropriated from a Malaysian sovereign wealth fund and hidden in investments around the world, including high-end real estate in New York, Los Angeles and London.
The complaint alleges that the stepson of Malaysia’s prime minister and corrupt officials connected to the fund, known as 1MDB, used complex financial transactions and shell corporations to launder the misappropriated money.
Manhattan properties listed in the complaint are a condo in the Park Laurel, located at 15 W. 63rd St., that was purchased in February 2010 for $24 million; a penthouse in the Time Warner Center bought in July 2011 for $30.5 million; a condo at 118 Greene St., bought for $13.8 million in February 2014; and a penthouse condominium in Walker Tower, 212 W. 18th St., that sold in January 2014 for about $51 million.
Beverly Hills properties under scrutiny include two Hillcrest homes, one sold in May 2010 for $17.5 million and the other purchased in March 2014 for $15 million; a luxury hotel called L’Ermitage, sold in January 2010 for $44.8 million; the Oriole Mansion, which went for $38.9 million in November 2012; and the Laurel Beverly Hills Mansion, sold in February 2014 for $31 million.
Other assets named in the complaint are a London penthouse purchased in July 2012 for £23,250,000 ($41.7 million); a controlling interest in New York’s Park Lane Hotel; numerous works of art, including paintings by Vincent van Gogh and Claude Monet; a private jet; a music publishing company; and the film production company that made “The Wolf of Wall Street” movie.
Executives at 1MDB have in the past denied that any funds were missing.
Authorities intend to return the money obtained through the forfeiture to the Malaysian government.