Malaysian Scandal – Attorney Peter C. Rageas Helping Investors Recover Losses US Authorities Fight Against Illicit Finance

US authorities allege that the stolen funds were funneled via a series of bank accounts and shell companies to partly finance the purchase of COASTAL ENERGY, a Houston firm controlled by Texas oilman Oscar Wyatt, JR. Coastal was represented in the deal by Citigroup, Inc., which advised its clients to tread carefully. The Justice Dept. is interested in the Coastal deal.

The Coastal deal may involve Najib’s step-son Riza Aziz and the transfer of millions of dollars into Najib’s personal account. The probe is looking at properties that have been purchased by shell companies belonging to Riza Aziz and close family friend Jho Low. Investment banks have been asked by the Justice Department to retain and turn over records that may be related to improper transfers from 1MDB.

The FBI has issued subpoenas to several past and present employees of film production company Red Granite Pictures in regards to allegations that $155 million was diverted from 1MDB to help finance the 2013 film, The Wolf of Wall Street. Najib’s stepson Riza Aziz is the co-founder and chairman of the company. Goldman Sachs is also being investigated for its possible role in money laundering and corruption.

The Department of Justice has begun moves to recover more than US $1B from people close Najib and 1MDB. Assets include:

  • High-end properties in Beverly Hills, Los Angeles, Manhattan, New York City and London
  • Fine artwork, a private jet, and
  • Royalties from the film and the production company, Red Granite Pictures.

The move reflects an intention by the US to open new fronts in its fight against illicit finance.

It also sets up a rare confrontation between the US and Malaysia, which is considered an important partner in the fight against terrorism.

If you have questions about Investment Fraud Schemes, broker misconduct, the Malaysian Scandal or about your broker’s management of your account, please contact our Law Firm at: 313-962-7777 for a case evaluation.

Join us next week to learn more: Investors May Recover Losses