Recovered Picasso, Van Gogh: The Art Behind 1MDB's $4.5 Billion Scandal
In a significant breakthrough in the ongoing 1MDB scandal, the U.S. Justice Department recently recovered a treasure trove of stolen artworks, including pieces by Pablo Picasso and Vincent van Gogh. This action marks another chapter in the saga of the Malaysian sovereign fund, which saw billions embezzled and laundered through a complex international scheme.
What Is the 1MDB Scandal?
The 1Malaysia Development Berhad (1MDB) was created to drive economic growth in Malaysia. However, between 2009 and 2015, top officials—including financier Low Taek Jho, better known as Jho Low — are alleged to have embezzled over $4.5 billion from the fund. This money was then funneled through international laundering schemes involving high-end real estate, luxury goods, and some of the world's most coveted artworks.
The Art Heist: Picasso, Van Gogh, and More
Among the numerous assets recovered during the investigation, some of the most notable include masterpieces by Picasso, Van Gogh, Claude Monet, Jean-Michel Basquiat, and Diane Arbus. These artworks were allegedly purchased with funds diverted from 1MDB. One specific Picasso drawing, titled "Trois femmes nues et buste d'homme," was acquired for $1.27 million in a Christie's auction in 2014.
While the artworks are valued at millions of dollars, they represent just a fraction of the assets tied to the 1MDB scheme. Collectively, the art and other forfeited assets — such as diamond jewelry — are estimated to be worth around $85 million.
Jho Low's Involvement and Other Assets
Jho Low is believed to have played a central role in the 1MDB embezzlement scheme, using stolen funds to acquire luxury items ranging from high-end real estate to priceless artworks. Low's lavish spending extended to acquiring diamonds for his mother, with the jewelry valued at over $1 million. The U.S. government has made significant strides in recovering these assets, but Low remains at large, facing numerous charges, including money laundering and bribery.
Jasmine Loo's Settlement
A critical development in the asset recovery process involved an agreement with Jasmine Loo Ai Swan, the former general counsel for 1MDB. Loo agreed to the forfeiture of assets under her control, including a Picasso drawing and a Swiss bank account containing misappropriated 1MDB funds. These assets, collectively valued at $1.8 million, were surrendered as part of a civil forfeiture action. However, this settlement does not absolve her of criminal liability. Loo still faces serious charges in Malaysia, including those under Section 409 of the Penal Code, which covers criminal breach of trust by public servants or agents, and carries penalties ranging from two to 20 years imprisonment, whipping, and fines. Additionally, she has been charged with money laundering, specifically related to millions of dollars diverted from the 1MDB bond offerings.
What Happens Next?
Since the beginning of the investigation, the U.S. has returned over $1.4 billion in misappropriated funds to Malaysia. As the case continues to unfold, efforts to recover additional assets and hold key figures accountable for the recovery of these artworks and other luxury items mark another milestone in this high-profile scandal. Still, it raises questions about how far-reaching the consequences of financial crimes like 1MDB can be.
This recovery of stolen artworks represents justice for Malaysia and highlights the global impact of financial crimes. While much has been regained, the story of the 1MDB scandal is still being written.
References: US Justice Department recovers Picasso, Van Gogh and other Artworks from 1MDB Scandal | US Feds Recovers $1.2 M. Picasso Drawing Allegedly Bought with 1MDB Funds from Christie’s Auction | Home minister says ex-1MDB lawyer Jasmine Loo arrested, ready to cooperate with police | Ex-1MDB lawyer Jasmine Loo arrested after turning herself in, says IGP
