BELLINZONA, Switzerland: Switzerland's Federal Criminal Court was to deliver its verdict Wednesday in the case of two PetroSaudi executives accused of embezzling US$1.8 billion (about RM7.8 billion) from the Malaysian sovereign wealth fund 1MDB.

Swiss state prosecutors sought hefty jail terms for the two men during their trial, which was heard by three judges in April at the court in the southern city of Bellinzona.

PetroSaudi chief executive Tarek Obaid, 48, and Patrick Mahony, 47, a director at the Saudi oil exploration and production company, are accused of involvement in a vast embezzlement orchestrated by Jho Low, an advisor to former Malaysian prime minister Datuk Seri Najib Razak.

Noting the sums involved compared to Malaysia's GDP, prosecutor Alice de Chambrier called it the "scam of the century" and branded the defendants as "calculative, manipulative and obscenely greedy", the Keystone-ATS news agency reported during the trial.

She sought a 10-year sentence for Obaid and a nine-year term for his right-hand man.

The defence pleaded for acquittal, arguing that no fraud had taken place.

Obaid is a Swiss-Saudi dual national, while Mahony is Swiss-British.

The prosecution requested that the two men be held in custody at the end of their trial, citing the risk of flight before the verdict, but the court refused.

The verdict hearing is scheduled to start at 2:00pm (1200 GMT).

According to the original indictment, "the two accused are alleged, with the aim of enriching themselves and others, to have misappropriated at least US$1.8 billion", transferred by 1MDB in connection with a joint venture with PetroSaudi, "and then to have laundered the amounts involved."

"The allegations cover a period at least from 2009 to 2015 and constitute the offences of fraud on a commercial basis, aggravated criminal mismanagement, and aggravated money laundering.

"The two accused used money misappropriated from 1MDB to acquire, among other assets, real estate in Switzerland and in London, jewellery, private equity, to develop PetroSaudi activities from which they received substantial income, and to maintain a lavish lifestyle," the indictment said.

The multi-billion-dollar 1MDB financial scandal has led to criminal investigations around the world, including in the United States, Switzerland and Singapore.

It is alleged that billions of dollars were pilfered from the 1Malaysia Development Bhd fund by a number of people and used to buy items ranging from artwork to a superyacht.

In 2022, Najib was sentenced to 12 years in jail in Malaysia for offences linked to the misuse of public money. In February, his sentence was halved to six years.

The 1MDB scandal led to the fall of Najib's government in 2018.

During the Swiss trial, the prosecution requested that assets sequestered by Switzerland be confiscated and returned to 1MDB.

Chambrier said Obaid and Mahony squandered their loot on precious stones, private jets, rented yachts and property in London and Geneva.

She accused them of "extraordinary criminal activity and tenacity" over 10 years between 2009 and 2019, if alleged acts of concealment are included, Keystone-ATS reported.

The defence lawyers tried to set out the context of relations between PetroSaudi and 1MDB.

Nicolas Rouiller said the Swiss attorney-general's office had "adopted a radically wrong approach", ignoring the nature of Saudi Arabia's absolute monarchy.

He said individuals, especially those belonging to very high-ranking families like Obaid, were not free in their actions.

As for the use of an Islamic loan, Rouiller said it was a common practice in Muslim countries and could not therefore be seen as a dishonest manoeuvre aimed at cheating 1MDB.

"There is no injury in this operation. This is exactly what is wanted" by the partners, he said.

Lawyer Daniel Zappelli said several allegations had been dropped by the prosecution, highlighted the absence of Najib and Low and said there were variations in the amounts that the defendants allegedly laundered, Keystone-ATS reported.

The defence also said Riyadh and Kuala Lumpur wanted to strengthen relations following Najib's election in 2009 and claimed the Malaysians wanted a joint venture between 1MDB and PetroSaudi wrapped up quickly.

 -AFP