Malaysia’s 1MDB has filed a legal claim against Amicorp Group, seeking more than $1 billion in compensation for an alleged fraud

Disappointing 1Malaysia Development Berhad, a Malaysian state fund, announced on Monday that it has issued a legal claim in excess of $1 billion against Amicorp Group and its CEO. The claim alleges that the company intentionally facilitated over $7 billion in fraudulent transactions.

One of the largest claims filed by 1MDB in connection with the multibillion-dollar graft scandal was filed in the British Virgin Islands against eight Amicorp entities and its Chief Executive Officer Toine Knipping. The claim alleges that they played a critical role in facilitating the defrauding of the sovereign wealth fund between 2009 and 2014, according to a statement from 1MDB.

Despite numerous phone conversations and an email request for comment, Amicorp Group did not respond promptly.

Previously, Malaysian and U.S. investigators had estimated that $4.5 billion was diverted from 1MDB after its inception in 2009. This investigation implicated former Prime Minister Najib Razak, Goldman Sachs (GS.N) staff, and high-level officials in different countries. Currently, Najib is incarcerated, but he has denied any culpability.

According to 1MDB, Amicorp, which is headquartered in Hong Kong, devised and oversaw a multifaceted conspiracy that concealed the funds’ true origin and destination by means of sham transactions, phantom companies, and fraudulent financial structures.

Singapore, Barbados, Curacao, Hong Kong, and the British Virgin Islands were purportedly used to transfer the stolen funds, according to 1MDB.

It also alleges that Amicorp provided access to the global financial system through Amicorp Bank, a bank registered in Barbados. Amicorp Bank provided fund entities and banking services to enable the repeated cycling of assets, giving the impression that 1MDB’s assets had been invested and generated returns when in reality they had been misappropriated.

Amicorp’s “dishonest” assistance in breaches of fiduciary duty and conspiracy to commit unlawful acts resulted in losses for 1MDB. The company stated that it is pursuing damages for these losses. The legal action is part of a global effort to recover stolen 1MDB assets.
“There is, in our view, strong evidence to suggest that Amicorp – at the highest levels – knew they were involved in a dishonest and illegal money laundering scheme designed to transfer large sums of cash away from its intended beneficiary – the people of Malaysia,” a spokesperson for 1MDB stated in the announcement.

Bernama, the state news agency, reported that Malaysia has recovered 27.17 billion ringgit ($6.06 billion) associated with 1MDB as of September of this year.
The exchange rate for one ringgit is $4.4870.