KUALA LUMPUR (July 24): The US Department of Justice (DOJ) has reached a deal with former 1Malaysia Development Bhd (1MDB) general counsel Jasmine Loo Ai Swan to recover artwork by Pablo Picasso, and a financial account in Switzerland traced to funds allegedly embezzled from 1MDB.

In a statement on Tuesday, the DOJ said that additionally, it had obtained forfeiture orders on other assets allegedly purchased with 1MDB funds by fugitive 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 alleged were acquired by Jho 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 (RM21.04 billion) in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Jho Low and Loo, through a criminal conspiracy involving international money laundering and bribery.

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.

The DOJ, however, added that the agreement with Loo does not release any criminal claims against her.

It said the forfeiture of the other artworks and jewellery allegedly purchased by Jho Low, which is based on a recent settlement agreement entered into in connection with the real estate and artwork forfeitures in two other cases, resolves three additional civil forfeiture cases filed in the US District Court for the Central District of California.

Additional US$85 million recovery

The collective value of these assets, together with the Loo assets, is estimated to be nearly US$85 million.

Prior to this settlement, the US has in total returned or assisted in the return to Malaysia of over US$1.4 billion in assets associated with the international money laundering, embezzlement, and bribery scheme.

Jho 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, and in the District of Columbia for allegedly conspiring to make and conceal foreign and conduit campaign contributions during the US presidential election in 2012.

The DOJ added that the agreement with Loo does not release any entity or individual from filed or potential criminal charges.

The FBI’s International Corruption Squads in New York City and Los Angeles, and the IRS Criminal Investigation Los Angeles Field Office are investigating the case.