People associated with the massive $4.5 billion Malaysian Development Berhad fraud in 2012 gambled millions at Las Vegas Sands casinos in Las Vegas, a financial expert claimed in court this week.
Businessman Jho Low (pictured), who has been on the run from Malaysia since 2017, reportedly used funds from the Malaysian- government-backed 1MDB fund to gamble at then-Sands-owned Venetian Las Vegas. Two payments worth $13 million were made to Las Vegas Sands in 2012 from accounts connected to Low.
The payments were also linked to a company called Red Granite Capital. That company is at the heart of the $4.5 billion 1MDB Fraud investigation. It was owned by Riza Shahriz Abdul Aziz, the son of former Malaysian Prime Minister Datuk Seri Najib Tun Razak. Razak resigned in 2012 after his role in the alleged fraud was uncovered.
As well as gambling millions in Las Vegas, the now-fugitive Low is accused of living the international high-life off the money made by defrauding the Malaysian people.
That reportedly included buying super yachts and private jets, expensive artworks by Jean Michel Basquiat and Picasso, dating supermodels, and investing $100 million in the production of the award-winning Hollywood movie, The Wolf of Wall Street.
The Fraud
Low was the reported ringleader of the massive 1MDB fraud. In sheer numbers, it ranks as one of the biggest thefts in history. It was so large, it caused financial stress on the entire Malaysian government’s budgets in the following years.
Various high-ranking Malaysian politicians and insiders are accused of funneling more than $4.5 billion out of the Malaysian government fund between 2009 and 2016. Low is accused of using dozens of shell companies to enact many of the fraudulent transactions, including some with fake names referencing large financial institutions like Blackstone.
Low denies the claims, but has failed to appear in any court to defend himself. Those involved have all claimed that unconfirmed Saudi investors were the source of the funds.
The fraud was uncovered by journalists and then U.S. federal investigators. Low was charged by the U.S. Government in 2017 with money laundering and criminal bribery. He has been reportedly on the run in China ever since, including being photographed at casinos in Macau. The investigation also led to several charges for senior figures at New York-based investment bank Goldman Sachs.
The Alleged Gambling
Malaysia’s legal system is complex and is often accused of favoring rich and powerful interests. Various figures appealing judgments against them — including former Prime Minister Razak and his stepson, Aziz — have been in the appeals process for eight years now.
This Monday, October 4, a UK-based financial fraud investigator appeared in court in the country’s capital, Kuala Lumpur, to testify in 1MDB’s lawsuit against Aziz’s Red Granite Capital.
Richard Templeman told the High Court he was certain that in 2012, Red Granite received $45 million in stolen funds from 1MDB. They were then passed on to a shell company called Alsen Chance, which then sent $13 million to Las Vegas Sands.
The payments were marked as “Players,” followed by an identification number. Templeman says this is indicative of a gambling transaction. Sands then returned $8.8 million a month later. But, the Nevada-based gambling operator apparently did not anonymize the transaction.
“Meanwhile, on July 23, 2012, amounts of $7.35 million and $1.3 million were credited to the Alsen Chance account from Las Vegas Sands LLC. These payments were marked ‘funds due from Low Taek Jho’,” Templeman said in court, as reported by local media.
The financial expert went on to say he was certain this was the remaining money left over from gambling funds used by Low. The well-connected Low was known to frequent the Venetian Las Vegas, which was owned by Las Vegas Sands until 2021. The legal case against Red Granite continues, with more hearings set for November 15.
Money Laundering Connections
Although Las Vegas Sands does not own any U.S. casinos, it has aspirations to return to the market, and is still based in Nevada. More allegations of stolen money and money launderers passing through Sin City will not be welcomed by it or the Nevada gambling business.
Resorts World Las Vegas, operated by Malaysia-based Genting, was recently embroiled in a huge money laundering scandal. The federal investigation encompassed millions gambled by several illegal California-based bookmakers, and ended in the firing of and criminal conviction for the resort’s former CEO, Scott Sibella. The investigation also found a connection to the theft of $16 million from baseball star Shohei Ohtani.
Also recently, Wynn Resorts settled for $130 million with the U.S. Department of Justice. The Wynn Las Vegas operator paid out to settle a case over transactions with non-U.S. individuals the federal agency said were suspicious. Wynn denied wrongdoing as a company, and said the individuals involved were no longer under its employ. But it remains the largest settlement paid by a Nevada casino operator in a legal case.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
