The US Department of Justice has taken a legal action to seize more than one billion dollars in assets from a Malaysian state fund, suspected of involvement in corruption.

Court papers filed by the Department in Los Angles allege that the money from the fund, 1Malaysia Development Berhad or 1MDB, was misappropriated and went to Malaysian government officials and their families through several shell companies. The papers also allege that the money was spent on buying real estate and art pieces.

The state fund was set up in 2009 with the encouragement of Malaysian Prime Minister Najib Razak, but it was found to have large debts. It has also been alleged that a huge amount of funds were siphoned from the fund to the prime minister.
US Attorney General Loretta Lynch said on Wednesday that the funds were stolen and laundered through US financial institutions.

The Malaysian government has already closed its investigation into the case, claiming no wrongdoing took place. But authorities in Singapore and Switzerland are still investigating.

Published Date:2016-07-21