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Jho Low, a Malaysian businessman, has become one of the most wanted fugitives in the world, for being the mastermind behind the 1MDB billion-dollar financial scam. The governments of the United States and Malaysia have accused him of several offenses in conjunction with a money-laundering operation that garnered billions of dollars from banks and affluent investors.
While several works such as Billion Dollar Whale: The Guy Who Fooled Wall Street, Hollywood, and the World, chornicling the life and misdeeds of the scammer have already been made public, The Con on ABC is prepping for its upcoming episode that will revisit the crimes of Jho Low and his associates. The episode, titled The Billion Dollar Con, will air on Thursday, August 18, 2022, at 10 pm ET.
According to sources, the investigation into Jho Low has disclosed the fraudulent activities of numerous others involved in the plan. In fact, it was revealed that investments from the Hollywood film businesses, the involvement of former Malaysian Prime Minister Najib Razak, two Goldman Sachs bankers, and even Low's father contributed to the entire project.
With details concerning 1MDB and fraudster Jho Low still surfacing every day in the news, here are five things to know about the controversy that is believed to have started in 2009 with the advent of 1Malaysia Development Berhad.
Five facts to know about the Jho Low and 1MDB controversy
1) Jho Low was at the center of the 1MDB financial scam
The Malaysian government established the 1MDB investment fund, which lost billions of dollars as a result of fraudulent activities. The debacle that contributed to the collapse of Malaysia's former government had Jho Low at its center.
According to the allegations, the businessman stole money from 1MDB in order to purchase expensive real estate in Beverly Hills, New York, and London, in addition to a premium boutique hotel in Beverly Hills. It is alleged that he was the brains behind the theft of hundreds of millions of dollars from the investment fund. Jho Low apparently spent the money on things such as boats, fine artwork, and jewelry.
It is also believed that he and his family laundered money via various financial institutions in a number of countries, including the United States of America, Switzerland, Singapore, and Luxembourg.
2) Former Malaysian Prime Minister Najib Razak convicted
Najib Razak and investor Jho Low collaborated to create 1MDB, a state-owned sovereign investment fund, in 2009 in Malaysia. The advisory board was chaired by Razak until 2016. It was established to encourage national growth.
The fund was able to generate billions of dollars for joint ventures and investment projects between the years 2009 and 2013. The majority of the funds generated, according to the US Department of Justice, were misappropriated and sent to low-affiliated shell businesses and offshore bank accounts.
Najib Razak was deposed as prime minister in 2018 as a result of rising scandal-related public outrage. The former Prime Minister, who was found guilty in the first of several trials, faced 42 accusations including abuse of office, money laundering, criminal breach of trust, and losses. The prosecution claims Low used 1MDB to transfer $27.3 million to a New York jeweler to purchase jewelry for Razak's wife.
3) Abu Dhabi's involvement in Jho Low's 1MDB scandal
According to sources, Jho Low snitched on 1MDB's Middle Eastern business associates. The United Arab Emirates' capital, Abu Dhabi, is said to have been involved, according to the purported scheme's mastermind, while the Abu Dhabi government has remained mum about its role in the 1MDB affair.
Low reportedly made a statement disclosing Abu Dhabi's involvement in the financial scam:
"The reality is, Abu Dhabi people did take money. The discussion I left off with them is, look, whatever I settle with the DOJ [Department of Justice] that is used to pay 1MDB bonds, you should all match the same amount, which is probably close to a billion dollars."
He also added:
"Because of the whole warrant of arrest, you know, effectively the UAE folks didn’t think it was safe, so I [have] just gotten into Dubai. The UAE is ultra-paranoid now, so I think it’s going to be challenging for me to get any clearance to meet."
4) About $500 million was allegedly spent on jewelry
Former Prime Minister Najib, who was also the finance minister at the time when billions were taken from the sovereign wealth fund, was reportedly given the bulk of the responsibility for the 1MDB scam. Jho Low asserted that,
"I have no authority to make any decision … It’s a pretty known fact that … all the approvals have to be approved by the minister of finance."
He continues by providing evidence in support of the US Department of Justice's conclusions that the majority of the more than $1 billion in Najib Razak's personal bank account came from 1MDB. The former PM maintains that the money was a gift from the late King Abdullah of Saudi Arabia. Low's claims, however, state otherwise.
Low reportedly said,
"The reality is, it is true that King Abdullah actually agreed to give [a] donation to the PM but that was the small portion of a larger portion."
However, the amount of 1MDB funds allegedly used to purchase jewelry for Rosmah Mansor, the former prime minister's wife, may be Jho Low's most astonishing allegation against Najib. Jho Low's $27 million pink diamond acquisition for Rosmah was just one of the many pieces of jewelry purchased for her.
5) Low and others involved in the scam had high-profile connections
In addition to a valid US arrest order, he is the subject of two Interpol Red Notices issued by Malaysia in June 2018 and Singapore in 2016. His passports, including the ones from Malaysia, have been revoked, but it seems that this has not affected his movements.
He often used private jets to enter and exit Thailand ahead of the 2018 Malaysian election, and the following year, he allegedly went to Kuwait. He traveled aboard a Gulfstream plane in November 2019 from Bangkok to Dubai, making a three-day detour to Ahmedabad, India. Malaysian police claim they were not informed by authorities that Jho Low had entered or left these countries notwithstanding the Interpol Red Notices against him.
China vehemently disputes the Malaysian police's unequivocal claim that they are aware that Jho Low resides in Macau. The fugitive has reportedly been residing in Asia's gambling hub since at least February 2018, according to separate sources in both Malaysia and Macau, who also verified that the residence is owned by a top Chinese Communist Party official.
Tune in to ABC's The Con this Thursday, August 18, 2022, to catch the full story.
