KUALA LUMPUR — 1Malaysia Development Berhad (1MDB) and subsidiaries have filed a suit against corporate services provider Amicorp Group (Amicorp) and its co-founder and CEO, Toine Knipping, for allegedly facilitating over US$7 billion in fraudulent transactions.
The legal claims centre on allegations of fraudulent trading, dishonest assistance in breaches of fiduciary duty and conspiracy to commit unlawful acts. The estimated claim value exceeds US$1 billion, 1MDB said in a statement today.
The legal action, filed in the British Virgin Islands (BVI) against eight Amicorp entities, are part of a global effort to recover assets stolen from 1MDB, it added.
Hong Kong-headquartered Amicorp is alleged to have played a vital role in enabling the fraud by facilitating the laundering of over US$7 billion in misappropriated funds between 2009 and 2014.
1MDB is also accusing Amicorp of creating and managing a “complex conspiracy” of layers of shell companies, sham transactions, and fraudulent financial structures that obscured the true origin and destination of the funds.
The stolen funds were allegedly routed through a global network spanning Singapore, Barbados, Curacao, Hong Kong, and the BVI.
1MDB also alleged that Amicorp provided access to the global financial system through Amicorp Bank, a bank registered in Barbados.
It was also alleged that Amicorp provided fund entities and banking services to allow for the repeated cycling of assets through the claimants, so as to fraudulently lay a paper trail to give the impression that 1MDB’s assets had been invested and generated returns, when in fact they had been misappropriated.
“There is, in our view, strong evidence to suggest that Amicorp – at the highest levels – knew they were “involved in a dishonest and illegal money laundering scheme” designed to transfer large sums of cash away from its intended beneficiary – the people of Malaysia.
“We are confident that our claim will succeed and are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia’s sovereign wealth fund while ensuring the recovery and restitution of these assets back to the Malaysian people,” 1MDB’s statement said.
1MDB seeks to hold Amicorp accountable for dishonest assistance in breaches of fiduciary duty and conspiracy to commit unlawful acts, seeking significant damages for the losses incurred by 1MDB and its affiliates.
It also said Amicorp hd previously faced regulatory action and fines for compliance failures in multiple markets in which it operates, such as The Netherlands, Abu Dhabi, Malta and BVI.
In addition to 1MDB’s suit, the liquidators of its subsidiaries filed a further suit on the same facts on Friday.
The suit was filed Baker & Partners (BVI) Limited, Tom Smith KC of South Square Chambers, James Bailey of 7 King’s Bench Walk, and Lim Chee Wee Partnership, which acts as the global coordinating counsel for 1MDB’s asset recovery efforts. – December 23, 2024