Swiss court’s conviction over ‘scam of the century’ next step to soothe harm done against Malaysians, 1MDB board says

KUALA LUMPUR, Aug 29 – Sovereign fund 1Malaysia Development Bhd (1MDB) yesterday lauded a Swiss court for convicting two PetroSaudi top executives for embezzling billions of ringgit from it, saying it was another step towards alleviating harm against Malaysians.

In a statement, 1MDB board highlighted that it had supported Swiss prosecutors throughout the investigation and trial, ensuring that frozen assets will be returned to Malaysia.

“We continue to bring enforcement actions against the parties involved in fraudulent misappropriation of Malaysian state funds around the world. Today’s judgment is a further step towards recovering the harm done to the people of Malaysia.

“We will continue to pursue those responsible for the looting of 1MDB and recover our nation’s rightful assets, wherever they may be,” a spokesman said in the statemente.

Yesterday, the Swiss Federal Criminal Court in Bellinzona convicted Swiss-British businessman Patrick Mahony and Saudi-Swiss businessman Tarek Obaid for multiple crimes, including embezzling, fraud and money laundering, related to the 1MDB scandal.

According to the indictment, the two executives defrauded the wealth fund of US$1.8 billion (RM7.8 billion) to enrich themselves, with Obaid getting at least US$805 million and Mahony at least US$37 million.

Obaid was sentenced to seven years in prison, while Mahony received a six-year sentence.

The court ordered the confiscation and restitution of their assets, including real estate and funds held in various bank accounts, amounting to more than US$240 million.

These assets will be restored to 1MDB as part of Malaysia’s ongoing efforts to recover funds lost in the scandal.

“This significant recovery has been achieved as part of our multi-disciplinary recovery strategy to support and supplement the ongoing criminal forfeiture,” it said.

Both Mahony and Obaid are also facing further civil and criminal charges in Malaysia related to the creation of a fraudulent joint venture between 1MDB and PetroSaudi International in 2009.

The 1MDB scandal, which involved the misappropriation of billions of dollars, has led to numerous legal actions across multiple jurisdictions as Malaysia seeks to recover its stolen funds.