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1MDB, subsidiaries sue Amicorp and its founder for facilitating laundering of US$7b (RM31.85b)
KUALA LUMPUR, Dec 23, 2024: Embattled Sovereign Wealth Fund (SWF), 1Malaysia Development Berhad (1MDB), and its subsidiaries are reported to have begun legal action against Amicorp Group and its co-founder Toine Knipping for allegedly facilitating the laundering of over US$7 billion (RM31.85 billion) in misappropriated funds.
They are seeking more than US$1 billion (RM4.5 billion) in damages from the global corporate services provider and its eight entities.
No News Is Bad News reproduces below a news report on the matter:
1MDB sues Amicorp, co-founder for alleged role in facilitating US$7bil fraud
-23 Dec 2024, 10:37 AM
The company is seeking over US$1 billion in damages from the global corporate services provider and its eight entities.
1MDB has accused Amicorp Group and its co-founder, Toine Knipping, of helping launder stolen funds through fraudulent transactions from 2009 to 2014. (AP pic)
PETALING JAYA: 1MDB and its subsidiaries have begun legal action against Amicorp Group and its co-founder Toine Knipping for allegedly facilitating the laundering of over US$7 billion (RM31.85 billion) in misappropriated funds.
Toine Knipping.
The lawsuit claims that Amicorp played a vital role in fraudulent transactions from 2009 to 2014, which resulted in the theft of funds from 1MDB.
Amicorp is accused of providing access to the global financial system through its subsidiary, Barbados-registered Amicorp Bank, allowing the repeated cycling of assets and the creation of a false paper trail to cover up the stolen funds.
The stolen money was allegedly funnelled through a global network that spanned Singapore, Barbados, Curacao, Hong Kong, and the British Virgin Islands (BVI).
“We are bringing this action to seek justice for the role we allege Amicorp played in facilitating the laundering and ultimate dissipation of billions of dollars in stolen funds,” a spokesman for the 1MDB board said in a statement.
“We allege this was achieved through the creation of structures designed to purposefully obscure the theft, and that Amicorp deliberately and knowingly created complex structures to mask the stolen monies as assets and make them difficult to trace.”
The spokesman said there was strong evidence suggesting that Amicorp, at its highest levels, was fully aware of its involvement in a “dishonest and illegal money laundering operation” designed to divert funds meant for Malaysians.
The lawsuit, filed in the BVI on Dec 20 against eight Amicorp entities and Knipping, seeks damages exceeding US$1 billion (RM4.55 billion) from the global corporate services provider.
1MDB is seeking to hold Amicorp accountable for “dishonest assistance in breaches of fiduciary duty and conspiracy to commit unlawful acts”.
The suit was taken out by Baker & Partners (BVI) Limited, Tom Smith KC of South Square Chambers, James Bailey of 7 King’s Bench Walk, and Lim Chee Wee Partnership, which acts as the global coordinating counsel for 1MDB’s asset recovery efforts.
1MDB said Amicorp had faced regulatory action and fines, including in the Netherlands, Abu Dhabi, Malta and the BVI, for compliance failures in multiple jurisdictions.
“We are confident that our claim will succeed and are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia’s sovereign wealth fund, while ensuring the recovery and restitution of these assets back to the Malaysian people,” the spokesman added.
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