The Swiss Federal Criminal Court has handed down verdicts to two executives from PetroSaudi, an oil exploration company, for embezzling over $1.8 billion from Malaysia’s state investment fund, 1MDB. Patrick Mahony and Tarek Obaid were found guilty of setting up a joint venture with 1MDB under false pretenses, ultimately defrauding the fund. Obaid received a seven-year sentence, while Mahony was sentenced to six years. The two men, along with fugitive Malaysian financier Jho Low, used fraudulent schemes to extract money from 1MDB between 2009 and 2015.
They laundered the stolen funds through Swiss bank accounts and used it to purchase real estate, jewellery, and other luxury items. The convictions were applauded by the 1MDB board, who seek the return of the embezzled funds. The 1MDB scandal, which has implicated individuals from various countries, has seen approximately $4.5 billion siphoned from the fund since its inception in 2009.
In a separate case, a former Goldman Sachs manager was sentenced to 10 years in prison for money laundering related to 1MDB. The US Department of Justice has also helped recover millions of dollars in 1MDB funds for Malaysia.
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