The US Department of Justice seized over US$73 million from bank accounts linked to fugitive businessperson Low Taek Jho, as stated in a civil forfeiture claim filed with the US courts yesterday.
The money, amounting to over RM300 million, was deemed to have been derived from alleged unlawful activities – including bank fraud, conspiring to commit bank fraud and false statements to a financial institution.
The forfeiture comes following the DOJ's allegation that several individuals assisted Low by funnelling tens of millions of dollars into the US to pay individuals to lobby high-level US government officials.
This was to influence, among others, DOJ investigations into the multibillion-dollar 1MDB case and related civil forfeiture proceedings of several of Low's assets.
It stated that these individuals believed they had to disguise the fact the money being used for lobbying came from Low, as the latter and his money were viewed as "toxic" to US banks following the DOJ probe.
Earlier today, the DOJ announced that George Higginbotham, a former DOJ staff, had pleaded guilty to aiding the "principal architect" behind the 1MDB scheme, by conspiring to deceive US banks of the source and purpose of tens of millions of dollars sent from overseas to finance a lobbying campaign on behalf of foreign interests.
According to the filings made with the District of Columbia District Court, four seizures from several accounts were made from the period between January to July 2018.
Of this, US$25 million and US$11 million were seized from two Citibank accounts held in the name of Higginbotham Law PC.
Meanwhile, another US$37.6 million was seized from an account at Morgan Stanley bank under the name Anicorn in March, and RM21,113 from an account at Wells Fargo Bank under the name of Artemus Group in July.
In the court documents, the DOJ alleged Low's money was "funnelled through various US bank accounts set up by, and under the control of, an entertainer and businessperson named Prakazrel “Pras” Michel".
"With the assistance of George Higginbotham, Michel opened multiple accounts at financial institutions in the US to maintain money funnelled into the US at Low's direction; however, the true source and purpose of the funds were not disclosed to the banks and were actively concealed from them.
"At all relevant times, Higginbotham, who was employed at the DOJ in a non-lawyer position, was not involved in any way in its investigation of Low and failed to influence any aspect of it," said the department.
It was stated that it was Low’s brother who had sought Michel’s assistance in 2016 to secure representation for Low in the US to assist the latter on the 1MDB civil forfeiture investigation.
Macau meet
The documents also stated allegations that Michel and Higginbotham met with Low in Macau in 2017 to discuss ways to continue to funnel the latter’s money into US financial institutions to pay those involved in the lobbying campaign.
"Michel, Higginbotham and Low, and others disguised the fact that the funds came from Low because they believed no US bank would accept Low’s money in light of the publicly-filed civil forfeiture actions in the Central District of California and the announced pending criminal investigation.
"Michel knew that Low was toxic to US banks and that US banks did not want to deal with him or accept Low’s funds."
A press statement sent by the DOJ today pertaining to Higginbotham's admission said he was alleged to have committed the offence in 2017.
Higginbotham had served as the senior congressional affairs specialist at the DOJ between July 2016 to Aug 2018.
The lobbying was meant to "resolve civil and criminal matters related to the DOJ’s investigation of the embezzlement and bribery scheme concerning 1MDB."
"In order to conceal the identity of the foreign principal behind the lobbying campaign, Higginbotham admitted to conspiring to make false statements to financial institutions in the US concerning the source and purpose of the funds.
"Higginbotham also admitted to working on various fake loan and consulting documents in order to deceive banks and other regulators about the true source and purpose of the money," the statement read.
The DOJ also stated that the 46-year-old Higginbotham admitted that the lobbying campaign also attempted to persuade "high-level US government officials" to remove another foreign national residing there back to the latter's country of origin.
