Written by OutSyed The Box
I received this in the email from a reader. Jho Low, Riza, Joey McFarland, Jasmine Loo, MOF1, Eric Tan etc please take note.
Operation Trident by Kurt Schwitters
The criminal complaint which the civil asset forfeiture action sets up is a three-pronged attack, as can be discerned pretty readily in the language of the civil action we have before us.
First, there are numerous acts of theft.
For instance, in paragraphs 55, 56 and 57 the re-payment of a fake loan is explained.
“56. Notwithstanding the reference in the JVA to a ‘loan’ from PetroSaudi to the Joint Venture, PetroSaudi made no such loan…”
So that is theft by embezzlement, which is to say misappropriation of funds placed in one’s trust or belonging to one’s employer.
Of course, there are many instances of this in one way or another in the complaint.
Second, there is securities fraud.
“112. In 2012, approximately $1.367 billion in 1MDB funds that were raised in two separate bond offerings were misappropriated and fraudulently diverted to bank accounts in Switzerland and Singapore. In issuing these bonds, 1MDB participated in the publication and disclosure of two offering circulars that contained material misrepresentations and omissions …”
So in addition to stealing part of the proceeds of the bond offering, the 1MDB criminals duped the bondholders by not disclosing that they intended to divert the money!
Pretty funny if you think about it. By not stating in the bond circular that a criminal cabal intended to divert a large percentage of the proceeds the conspirators violated US securities law because :
“This information would have been material to the transactions, because it would have significantly affected 1MDB’s liquidity, as well as its ability to engage successfully in the business ventures described in the offering circulars, and thereby increased the risk of default.”
Third, there is a tax evasion aspect.
Richard Weber, the Criminal Investigations Chief of the US Internal Revenue Service spoke at the press conference. This is the guy who might nail some of the players most painfully, especially Riza Aziz and Joey McFarland.
A great deal of effort was put into the conspirators trying to claim that huge amounts of cash or very valuable paintings were “gifts”. Why is this important? Because if in fact these sums were not gifts, then they were “income” and if income then income tax is due.
Riza Aziz claimed on his 2012 US tax return that $94 million was a “gift” from fake Aabar. A partner at his accounting firm was skeptical: “The funds came from an investor in Red Granite Capital. I cannot sign the returns without proof it is not income to Riza. The firm would be put at risk, these numbers are too high.”
So Riza cooked up a letter from al-Husseiny.
“This letter is intended to confirm that the transfer of US$94,500,000.00 which consisted of a wire transfer on June 18, 2012 to BSI Bank, Ltd. (account number [XXX]250A) for the benefit of Riza Aziz was intended as a gift.”
Similarly, Joey McFarland and Jho Low received supposed gifts of artwork from Jho Low’s associate Eric Tan. As the DoJ explained “Individuals engaged in money laundering or who otherwise wish to conceal the true nature of financial transactions will sometimes acquire assets through a nominee, who thereafter ‘gifts’ the assets to the true intended purchaser.”
And guess what? You have to declare income from criminal activity on your US tax return. And if you don’t…big felony!
So why did Riza Aziz get those millions from fake Aabar? Well, I think the case can be made that he was receiving stolen money and knowingly laundering it in compensation to Najib Razak for the important role the PM played in the thefts.
He bought pricey real estate, and after a while I expect the shell companies holding these properties could be signed over to step-dad, with Riza keeping a suitable piece for his trouble.
My comments : Theft, securities fraud, tax evasion. These are just some of the “crimes” that have been committed.
Here is some quick finger work regarding sentencing and punishment of these crimes in the US:
- Theft : In California for felony grand theft, you may be sentenced to sixteen (16) months, two (2) years, or three (3) years of incarceration
- Securities fraud.
Fines. Securities fraud can involve very high fines, though the amount of fine will depend upon the circumstances of the case. In some situations, such as in cases of insider trading, fines of up to $5 million are possible, while fines for other types of securities fraud can be $10,000 or more.
Incarceration. A conviction for securities fraud can also result in a prison sentence. Any conviction for a federal securities fraud crime can result in a 5-year federal prison sentence per offense
- Tax evasion
Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.
More than one person has suggested that in exchange for lighter sentencing, Jho Low may turn or have already turned ‘Prosecution’ witness. Mainly because his father Larry Low and brother Szen (?) Low have also been named in the Attorney General’s court filing.
If that happens, and Jho Low sings like a canary, many, many dirty details will come out, including Big Momma’s role in the whole schmucky affair.
Big Momma has so far escaped unscathed because there is not a single piece of paper or document which has her signature or name. The whole thing has been dumped on MFO1’s head. And also on the head of the not very clever boy.
The next stop in the “One Step Beyond” is “securing” Jho Low, Jasmine Loo Ai Swan, Casey Tang and a few others under United States jurisdiction. Also MFO1. Certainly the US Attorney General has thought this through.