Malaysia's 1MDB sues Amicorp Group for alleged fraud

KUALA LUMPUR

Malaysia's 1MDB said on Monday it was suing corporate services provider Amicorp Group and its CEO Toine Knipping for more than $1 billion for allegedly facilitating more than $7 billion in fraudulent transactions over a five-year period.

The scandal-wracked sovereign wealth fund claimed Amicorp, which is headquartered in Hong Kong, had used shell companies and sham transactions.

Its legal action filed in the British Virgin Islands was part of efforts to recover stolen assets, 1MDB said.

"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," it said in a statement.

Last week, a Malaysian court approved the government's application to bar PetroSaudi International and its chief executive from accessing $340 million connected to 1MDB.

The Malaysian ruling came after Tarek Obaid, the Swiss-Saudi chief executive of the oil exploration and production company, was sentenced in August to seven years in prison in Switzerland over the embezzlement of $1.8 billion from 1MDB.

The multi-billion-dollar financial scandal has led to criminal investigations around the world for years, including in the United States, Switzerland and Singapore.

It is alleged that billions of dollars were pilfered from 1MDB by a number of people and used to buy items ranging from artwork to a superyacht.

The scandal led to the fall of Malaysian Prime Minister Najib Razak's government in 2018.

Najib is serving a six-year jail term for corruption related to a massive financial scandal at 1MDB.