Malaysia sues Deutsche Bank, JP Morgan, Coutts over 1MDB

Malaysia sues Deutsche Bank, JP Morgan, Coutts over 1MDB
Malaysia sues Deutsche Bank, JP Morgan, Coutts over 1MDB   -   Copyright  (c) Copyright Thomson Reuters 2021. Click For Restrictions - https://agency.reuters.com/en/copyright.html   -  
By Reuters

<p><body> <p>By Rozanna Latiff and Joseph Sipalan</p> <p><span class="caps">KUALA</span> <span class="caps">LUMPUR</span> (Reuters) – Malaysia’s now-defunct 1MDB state fund is suing units of Deutsche Bank, J.P. Morgan and Coutts & Co to recover billions in alleged losses from a corruption scandal at the fund, court documents seen by Reuters showed.</p> <p>1MDB is claiming $1.11 billion from Deutsche Bank (Malaysia) Bhd, $800 million from J.P. Morgan (Switzerland) Ltd and $1.03 billion from a Swiss-based Coutts unit, and interest payments from all of them, according to the lawsuit. </p> <p>The claims are premised on “negligence, breach of contract, conspiracy to defraud/injure, and/or dishonest assistance”, 1MDB said in the documents, filed at a Kuala Lumpur court on Friday. </p> <p>The three companies did not immediately respond to a request for comment on the claims in the lawsuit.</p> <p>Malaysia’s finance ministry said on Monday that 1MDB and a former unit had filed 22 civil suits seeking to recover more than $23 billion in assets from entities and people allegedly involved in defrauding the fund and its ex-subsidiary. It did not identify any of the individuals or entities being sued.</p> <p>Malaysian business daily The Edge first reported the suits against the banks and others. </p> <p>JP Morgan and Coutts declined to comment on the report. </p> <p>A Deutsche Bank spokesperson said: “We have not been served any papers, and we are not aware of any basis for a legitimate claim against Deutsche Bank.”</p> <p>The lawsuit seen by Reuters did not detail the banks’ role in 1MDB’s affairs.</p> <p>Malaysian and U.S. investigators say at least $4.5 billion was stolen from 1MDB between 2009 and 2014, in a wide-ranging scandal that has implicated high-level officials, banks and financial institutions around the world. </p> <p>Malaysian authorities have previously said there were billions of dollars more that were unaccounted for. </p> <p>The lawsuits come after Malaysia recovered nearly $5 billion in assets following deals over the past three years with U.S. bank Goldman Sachs, which helped 1MDB raise billions of dollars in funds, audit firm Deloitte and others. </p> <p>In 2017, Switzerland’s financial watchdog <span class="caps">FINMA</span> said the Swiss subsidiary of <span class="caps">JPM</span>organ had committed serious anti-money laundering breaches over business relationships and transactions linked to 1MDB. <span class="caps">JPM</span>organ said at the time it has since increased training and made improvements in monitoring and surveillance.</p> <p>Last year, Swiss authorities convicted a former Coutts banker for failing to report suspicious transactions linked to 1MDB.</p> <p>The Edge also reported those being sued by 1MDB include former Malaysian Prime Minister Najib Razak, who founded the fund.</p> <p>Najib said in a Facebook post on Monday that the claim seemed intended to bankrupt him, and suggested that the lawsuit was politically motivated.</p> <p>Last year, Najib was found guilty of corruption and money laundering in a 1MDB-linked case. He denies wrongdoing and is appealing the verdict.</p> <p/> <p> (Reporting by Rozanna Latiff and Joseph Sipalan; additional reporting by Marwa Rashad in London; Editing by Martin Petty and Pravin Char)</p> </body></p>