A pair of Geneva businessmen, Tarek Obaid and Patrick Mahony, were found guilty of fraud by a Swiss court for their involvement in a US$1.8 billion scam to defraud Malaysia’s 1MDB fund. Obaid received a seven-year sentence, while Mahony was sentenced to six years for criminal mismanagement and money laundering.
The court justified the prison sentences due to the large sum involved and the defendants’ selfish motive. Both men were ordered to compensate 1MDB, return seized assets, and have some assets confiscated.
The court allowed Obaid and Mahony to appeal the verdicts. Obaid’s lawyer expressed disappointment, while Mahony’s lawyer considered the decision “shocking.” Swiss prosecutors see this as a victory in combating white-collar crime.
1MDB board welcomed the decision, vowing to recover looted assets. Obaid and Mahony were accused of embezzling funds through a fake oil exploration company. The verdict is a step towards justice for Malaysia.