UK investigator: US$13 million of 1MDB funds gambled in Las Vegas by Jho Low and associate

KUALA LUMPUR, MALAYSIA: A UK-based financial fraud investigator, Richard Templeman, testified in the Malaysian High Court on 4 November that fugitive financier Low Taek Jho, better known as Jho Low, and his associate Eric Tan Kim Loong allegedly used 1Malaysia Development Berhad’s (1MDB) funds for gambling in Las Vegas in 2012.

Templeman revealed that US$13 million was transferred to Las Vegas Sands LLC, where transactions were designated for specific player numbers associated with Low and Tan, as reported by state media Bernama.

According to Templeman, two transactions on 10 and 11 July 2012 saw sums of US$11 million and US$2 million, respectively, allocated to “PLAYER NO 3454296” and “TAN KIM LOONG PLAYER NO 4678710.”

Investigations traced these funds to Red Granite Capital Ltd (RGC), a company owned by Riza Shahriz Abdul Aziz, the stepson of former Prime Minister Datuk Seri Najib Tun Razak.

Templeman was testifying as witness on behalf of the plaintiffs, 1Malaysia Development Berhad (1MDB) and its three subsidiaries: 1MDB Energy Holdings Ltd, 1MDB Energy Ltd, and 1MDB Energy (Langat) Ltd.

The plaintiffs are pursuing a lawsuit against the defendants—Riza Aziz and two companies linked to him, Red Granite Pictures Incorporated (RGP) and RGC—for the misappropriation of funds totalling US$248 million.

They claim Riza either knew or was wilfully negligent in verifying the funds’ sources and are now seeking repayment.

In response, Riza’s defence has argued that funds used for their projects were loans from either the Saudi royal family or the International Petroleum Investment Company.

Testimony unveils alleged money laundering operations through shell company and casino transactions

According to Templeman, on 20 June 2012, US$41 million was transferred from RGC to Alsen Chance, a shell company alleged to have laundered funds misappropriated from 1MDB and SRC International Sdn Bhd.

Templeman stated that Alsen Chance had no legitimate business functions and acted solely as a conduit to distribute funds illicitly.

Further testimony revealed that on 23 July 2012, Las Vegas Sands LLC returned US$7.35 million and US$1.3 million to Alsen Chance.

Templeman explained these amounts likely represented balances from the original funds sent to the casino for gambling purposes by Low and Tan.

Templeman, who has 24 years of experience investigating complex financial crimes, further testified that Riza also received millions of dollars from Good Star Limited, a company owned by Jho Low, between 2011 and 2012.

Good Star received US$1.03 billion from 1MDB in prior transactions in 2009 and 2011.

In the suit filed in 2021, 1MDB and three subsidiaries alleged that Riza and his companies, Red Granite Pictures Inc. and RGC, had misused US$248 million in 1MDB funds for personal enrichment, including film financing and property purchases.

Najib Razak to defend 25 charges in 1MDB scandal after court deems evidence sufficient

Earlier, Kuala Lumpur High Court on 30 October decided that former PM Najib Razak will proceed with his defence on 25 charges of abuse of power and money laundering.

Judge Collin Lawrence Sequerah found the prosecution’s evidence compelling enough to require Najib to respond formally to the charges in 1MDB corruption case.

Najib faces four counts of abuse of power for allegedly using his position to receive RM2.28 billion (approximately US$518 million) from 1MDB funds, in addition to 21 counts of money laundering involving the same amount.

The abuse of power charges are connected to events that allegedly took place at an AmIslamic Bank Bhd branch on Jalan Raja Chulan between 24 February 2011 and 19 December 2014, while the money laundering charges involve alleged transactions occurring between 22 March and 30 August 2013.

If convicted, Najib faces up to 20 years in prison and fines up to five times the value of the gratification received or RM10,000  (US$2,290), whichever is greater.

Najib issued a public apology last month for what he described as mishandling the 1MDB scandal, stating in a letter read by his son at a press conference that “it pains me every day to know that the 1MDB debacle happened under my watch as minister of finance and prime minister.”

However, Najib has also maintained his innocence, arguing that he should not be held legally accountable for activities he claims he neither initiated nor knowingly supported.

Najib is already serving a sentence following his conviction in a separate 1MDB-related case involving SRC International, another former subsidiary.

His original 12-year sentence was later reduced by half.