Federal judge puts hold on the seizure of
1MDB assets

DOJ and Steve Witkoff put Park Lane Hotel up for sale earlier this year

TRD New York /
Sep.September 18, 2017 09:06 AM

Jho Low and the Park Lane (Credit: Getty Images)

The federal government will hold off on its attempt to seize assets allegedly bought with funds stolen from the 1MDB Malaysian state investment fund while the Department of Justice looks into possible criminal charges for those connected to the scheme.

A federal judge in Los Angeles granted the U.S. government’s request to delay its attempt to seize the assets, the Financial Times reported. The ruling came one day after Malaysian Prime Minister Najib Razak, who is tied to the probe but denied any wrongdoing, visited the White House.

The Department of Justice’s probe into alleged misappropriation of $4.5 billion from the fund has ensnared Steve Witkoff’s Park Lane Hotel. Politically connected Malaysian businessman Jho Low, who is said to have played a role in the alleged scam, invested in the Park Lane and a $30 million penthouse at the Time Warner Center.

The Justice Department has filed claims against $1.7 billion in assets that were allegedly purchased with the stolen funds, and wants to return the proceeds to Malaysian taxpayers. Prosecutors are also looking into the possibility of filing criminal charges against those who laundered the money through the U.S. in order to acquire those assets.

The forfeiture cases are being put on hold in order to avoid releasing details that could tip off potential criminal defendants.

Earlier this year, the DOJ and Witkoff put the Park Lane up for sale. [FT]Rich Bockmann


Related Articles

arrow_forward_ios

How do brokers get listings from the Department of Justice?

Related Chairman Steve Ross and Time Warner Center at 25 Columbus Circle (Credit: Getty Images and iStock)

A free penthouse for Steve Ross, now on the market for $75M

Jho Low and the Mandarin Oriental penthouse at 80 Columbus Circle (Credit: Getty Images and StreatEasy)

Jho Low’s old pad at the Time Warner Center is officially up for sale at $30M

Manhattan hotel at center of 1MDB fraud case lands $615M refinancing

Jho Low’s superyacht sells, marking largest recovery of funds from 1MDB scandal

Abu Dhabi’s ties with Goldman Sachs sour amid 1MDB scandal

Abu Dhabi fund ups stake in Park Lane Hotel as part of 1MDB funds recovery

Deloitte fined by Malaysian government over 1MDB scandal

arrow_forward_ios