Malaysia’s 1MDB, which recovered more than $3bn from firms including Goldman Sachs, has reportedly pressed charges against firms including JPMorgan and Deutsche over $23bn loss.
The defunct state investment fund is claiming $1.11 bn from Deutsche Bank Malaysia, $800m from JP Morgan Switzerland and $1.03bn from a Swiss-based Coutts unit, and interest payments from all of them, according to a lawsuit seen by Reuters.
The claims are based on ‘negligence, breach of contract, conspiracy to defraud, injure, and/or dishonest assistance’, 1MDB said in the lawsuit.
JPMorgan, Deutsche Bank and Coutts did not comment on the claims in the lawsuit, which did not mention their roles in the scandal.
A Deutsche Bank spokesperson told Reuters: “We have not been served any papers, and we are not aware of any basis for a legitimate claim against Deutsche Bank.”
According to Malaysia’s finance ministry, 1MDB and a former unit filed 22 civil suits to recover over $23bn in assets from companies and individuals allegedly associated with defrauding the fund and its ex-subsidiary.
Malaysian and US investigators said that at least $4.5bn was stolen from 1MDB in a scandal during 2009 and 2014.
In 2019, the US Department of Justice reportedly launched a probe against Deutsche Bank to examine the latter’s role in the 1MDB Malaysian state fund scandal.
Malaysia’s former Prime Minister Najib Razak was sentenced to 12 years of imprisonment last year in relation to the scandal.
In January this year, Goldman Sachs slashed the annual pay of its CEO David Solomon as a punitive measure for the bank’s role in the 1MDB scandal.
In August last year, Goldman Sachs finalised a $3.9bn agreement with the government of Malaysia to settle all allegations.
Last October, the Monetary Authority of Singapore issued lifetime prohibition orders against ex-BSI executive Kevin Michael Swampillai over the scandal.