KL court orders Jho Low’s sister and associate to pay $4.7b to 1MDB
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Jho Low is still on the run.
PHOTO: THE STAR
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KUALA LUMPUR - The High Court in Kuala Lumpur has ordered the sister of fugitive businessman Low Taek Jho and his close associate Eric Tan to pay around US$3.6 billion (S$4.7 billion) to 1Malaysia Development Berhad (1MDB) over “tainted proceeds” that belonged to the sovereign wealth fund.
Justice Mahazan Mat Taib granted the judgment in default (JID) against Low May Lin, the sister of Low, also known as Jho Low; and Tan, whose whereabouts remain unknown, after finding that 1MDB had proven its case against the two.
“The evidence before this court reveals an elaborate, multi-layered, and multi-faced siphoning of funds orchestrated by individuals in positions of power, aided by a network of offshore entities and trusted associates, including the defendants,” Justice Mahazan said on Nov 25.
The court said the plaintiffs had tendered extensive documentary evidence, including bank records, SWIFT confirmations, account opening forms, corporate documents and fund-flow reconstruction charts.
“The plaintiffs also called three witnesses, namely former 1MDB chief executive officer Shahrol Halmi, UK-based financial fraud investigator Richard Templeman, and offshore and cross-border asset recovery specialist Angela Barkhouse. Their evidence stands unchallenged,” Justice Mahazan said.
The court said it was satisfied that each disputed transaction involved trust property or corporate assets of the plaintiffs being disposed of in breach of fiduciary duty.
Documentary evidence showed that Tan was the beneficial owner of Alsen Chance and Blackstone accounts, which received US$2.79 billion wrongfully diverted from 1MDB.
Meanwhile, Low May Lin received US$809,319 directly into her personal account through four transfers from her father Larry Low Hock Peng.
“These transfers were gratuitous, lacked any commercial rationale, and originated from funds misappropriated via the Good Star structure.
“As the sister of Jho Low, her role as a personal beneficiary of siphoned funds fits squarely within the wider pattern of family-based concealment.
“The identities of the recipients, the structure of the transactions, and the roles of Jho Low and Datuk Seri Najib Razak established that the funds reaching Tan and May Lin were tainted proceeds,” Justice Mahazan added.
The court ordered Low May Lin to pay US$809,319 and Tan to pay US$2,795,333,000 to 1MDB.
1MDB and its four subsidiaries filed the US$3.78 billion suit against Jho Low, his father, his sister, his brother Low Taek Szen, his mother Goh Gaik Ewe, and Tan, seeking proprietary relief arising from the fraudulent misappropriation of substantial sums belonging to 1MDB and its subsidiaries.
In 2022, 1MDB obtained a JID against Jho Low, Low Hock Peng and Low Taek Szen. In 2024, another JID was obtained against Goh.
In the Nov 25 decision, the judge noted that Low May Lin and Tan were duly served with the court papers but failed to enter an appearance, file any pleading, or attend the trial.
The case therefore proceeded to a full trial, pursuant to Order 35 of the Rules of Court 2012, where it went unopposed. THE STAR/ASIA NEWS NETWORK
