UK law firm denies wrongdoing, knowledge of 1MDB-linked MACC probe: Report

International law firm White & Case has denied any wrongdoing amid a report that its UK offices are under investigation by the MACC over their role in the 1MDB-PetroSaudi deal.

London-based Sunday newspaper The Observer yesterday reported the firm’s denial, three days after MACC chief commissioner Azam Baki said the anti-graft body has completed its investigation into alleged links to the misappropriation of 1MDB funds, with a recommendation that charges be filed against several individuals.

“We are not aware of any criminal investigation into White & Case, and we strenuously deny any allegations of criminality regarding this matter.

“We strongly refute any suggestion that White & Case acted in any way inconsistent with the highest ethical and professional standards.

“We are vigorously defending our firm against the allegations in the complaint, and we are confident that we will be vindicated,” said White & Case, according to the report.

Probe scrutinised documents

The firm has been tied to the alleged misappropriation of US$1 billion (RM4 billion) in 1MDB funds, including the diversion of around US$700 million to an offshore entity beyond the Malaysian sovereign wealth fund’s control.

In December last year, MACC said it was probing the firm over suspected involvement in financial transactions linked to proceeds from unlawful activities involving 1MDB funds.

The Observer quoted Azam as saying that MACC’s investigation was focused on documents allegedly drawn up for the deal, suspected to contain “false or misleading information”.

“MACC is also examining payments made to the firm that are believed to involve funds directly linked to the alleged misappropriation of 1MDB assets,” he said.

On April 2, Azam said the probe against White & Case covered, among others, the preparation of documents suspected to contain false information and particulars, as well as misleading payment instructions that allegedly led to the disbursement of funds linked to 1MDB to unauthorised parties.

He said investigations conducted under the MACC Act 2009 and the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 also examined payments made to White & Case, believed to involve funds directly linked to the misappropriation of 1MDB assets.

He further revealed ongoing international cooperation to strengthen the case by obtaining key information and documents through formal legal channels, such as the Attorney-General’s Chambers, as well as via Mutual Legal Assistance mechanisms with authorities in the United Kingdom.

According to The Observer, it was previously reported that White & Case was also under investigation in the UK by the Solicitors Regulation Authority.

The firm, however, maintained that it acted in accordance with the highest professional ethical standards during its involvement with the joint venture.

Misconduct claims

Apart from the investigations, White & Case also faces a claim filed by 1MDB in 2024, seeking US$1.83 billion and US$33 million in losses from the firm and Patrick Mahony, a director of PetroSaudi International Ltd.

In its claim, 1MDB alleged that White & Case assisted PetroSaudi in committing fraud and conspired to harm the fund while acting as its legal counsel.

The alleged misconduct relates to two corporate transactions: the 2009 joint venture with PetroSaudi, known as the Good Star phase, and the 2010 restructuring of 1MDB’s stake in the joint venture, which 1MDB claims resulted in significant financial losses.

According to The Observer, the firm had rejected the allegations as baseless but declined to answer questions in advance of any court hearing about the checks it conducted on the joint venture and whether it might have failed in its duties.

On Feb 23 this year, The Edge reported that the Court of Appeal had dismissed two motions filed by White & Case for a stay against a High Court decision last year that declared Malaysia has jurisdiction to hear the 1MDB suit, and for the suit to be consolidated with another suit that 1MDB had filed against Deutsche Bank (M) Bhd and PetroSaudi.

Najib turns to Federal Court over RM1.9m suit against Thomas

Najib's lawyers dispute 'incomplete' narrative of ex-SRC director's court testimony

SRC board obeyed Najib's instructions believing they were good for country, court told

'Deja vu' of 1MDB days, says Pua as cops probe alleged plot to topple govt

Najib fully aware of accounts, issued cheques with them: Ex-banker

NFA for Apandi: Lawyer asks why cops ended 1MDB probe within months