US DOJ reaches agreement with Loo to recover Picasso artwork

The US Justice Department (DOJ) has reached an agreement with the former general counsel of 1MDB Jasmine Loo to recover artwork by Pablo Picasso and a financial account in Switzerland traced to funds allegedly embezzled from 1MDB.

Additionally, the department said it has obtained forfeiture orders on other assets allegedly purchased with 1MDB funds by fugitive businessperson Low Taek Jho (Jho Low), including diamond jewellery and artwork by Vincent Van Gogh, Claude Monet, Pablo Picasso, Jean-Michel Basquiat, and Diane Arbus.

“The department previously brought numerous civil forfeiture cases against assets that it alleges were acquired by Low and his co-conspirators using funds allegedly embezzled from 1MDB.

“According to the civil forfeiture complaints, from 2009 through 2015, more than US$4.5 billion (RM21.03 billion) in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Low and Loo, through a criminal conspiracy involving international money laundering and bribery,” it added in a statement.

The DOJ said the agreement with Loo resolves the civil forfeiture action against the Picasso artwork and financial account in Switzerland under her control, which are collectively valued at approximately US$1.8 million.

However, it added that the agreement does not release any criminal claims against her.

US$85m in collective value

According to the department, the collective value of assets forfeited from Loo, combined with that of Low’s forfeited via various lawsuits, is estimated to be nearly US$85 million.

Yesterday, Bloomberg reported that a US federal judge ordered fugitive businessperson Low to forfeit a trio of “flawless” diamonds he bought for his mother Evelyn, using money allegedly looted from 1MDB.

The report said the jewellery comprised a 7.35-carat diamond ring, estimated to be worth about US$1.17 million and a pair of matching diamond earrings worth about US$628,000 designed by New York-based designer Lorraine Schwartz, who has designed for celebrities like Beyonce and Adele.

In June, the DOJ reached an agreement with Low to forfeit more than US$100 million in the alleged embezzlement of US$4.5 billion from 1MDB.

Prior to the latest settlement, the US has returned or assisted in the return of US$1.4 billion in assets associated with 1MDB, added the department.

“Low separately faces criminal charges in the eastern district of New York for allegedly conspiring to launder billions of dollars embezzled from 1MDB and for conspiring to violate the Foreign Corrupt Practices Act by allegedly paying bribes to various Malaysian and Emirati officials.

“In the District of Columbia, he faces charges for allegedly conspiring to make and conceal foreign and conduit campaign contributions during the US presidential election in 2012.”

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