Malaysia’s 1MDB sues Hong-Kong headquartered Amicorp for US$1 billion for alleged fraud

The claim alleges Hong Kong-headquartered Amicorp of creating shell companies and enabling the misappropriation of funds between 2009 and 2014

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Published: 5:00pm, 23 Dec 2024Updated: 12:13pm, 24 Dec 2024

Scandal-hit Malaysian state fund 1Malaysia Development Berhad (1MDB) said on Monday it has filed a legal claim of more than US$1 billion against corporate services provider Amicorp Group and its CEO, alleging the firm knowingly facilitated over US$7 billion in fraudulent transactions.

The claim, among one of the biggest filed by 1MDB related to the multibillion dollar graft scandal, was filed in the British Virgin Islands against eight Amicorp entities and its Chief Executive Officer Toine Knipping, alleging that they played a vital role in enabling the sovereign wealth fund to be defrauded between 2009 and 2014, 1MDB said in a statement.

Amicorp rejected 1MDB’s claim and vowed to defend itself in the British Virgin Islands suit.

“Amicorp strongly denies the allegations made by the claimants relating to wrongful acts, including knowingly facilitating over US$7 billion in fraudulent transactions relating to the misappropriation of 1MDB’s funds,” it said in a statement.

Malaysian and US investigators had previously estimated US$4.5 billion was siphoned away from 1MDB following its inception in 2009, implicating former Prime Minister Najib Razak, Goldman Sachs staff and high-level officials elsewhere. Najib is currently in prison but has denied wrongdoing.

(FILES) Malaysia’s former prime minister Najib Razak looks on as he walks escorted by prison officers during an appeal hearing at the Kuala Lumpur High Court on April 17. Photo: AFP

1MDB alleges Hong Kong-headquartered Amicorp created and managed a complex conspiracy consisting of layers of shell companies, sham transactions, and fraudulent financial structures that obscured the true origin and destination of the funds.