The US Department Of Justice has just filed a further complaint in its ongoing action to recover funds stolen from 1Malaysia Development Bhd, which includes the following statements of fact:
443. The purpose of this unnecessarily complicated funds flow was to create the appearance that fund units in the Brazen Sky Account were being redeemed for cash and being paid forward to 1MDB, thereby fraudulently disguising the fact that the fund units were illiquid and relatively worthless
444. The pattern of fund flows described above was largely repeated with the second tranche of loan proceeds that was sent to Aabar-Seychelles at the end of September 2014. This time, however, the fund flows exhibited one notable difference. As explained below, the majority of the funds that transited through the Brazen Sky Account were returned to Aabar-Seychelles rather than being retained by 1MDB. This allowed the funds to be recycled again and again through the same circle of entities, thereby creating the appearance of multiple “redemptions” using the same pool of money
Despite that, IPIC has managed to find a buyer for the “units” who has agreed to pay USD 2.43 BILLION.As previously reported :
……, Abu Dhabi arranged for an undisclosed entity domiciled in the Seychelles to buy the units from 1MDB at the guaranteed value, to be settled by deferred payments from this month to October 2022, said a senior financial executive familiar with the matter.
The London Stock Exchange ought to have suspended trading in IPIC GMT Notes when the above was first reported in April this year. Now its wilful negligence has been exposed by the US DOJ.
Friday, April 28, 2017
LCIA IPIC-1MDB consent award further complicated by revelation that IPIC is directly involved in a sham transaction,not disclosed to holders of its debt securities