KUALA LUMPUR: Fugitive businessman Low Taek Jho and his associate allegedly spent US$13 million of funds linked to 1Malaysia Development Bhd (1MDB) on gambling in Las Vegas in 2012, the High Court heard today.
Financial fraud investigator Richard Templeman said that the money used for the two-day gambling spree was transferred through Datuk Seri Najib Razak's stepson, Riza Aziz, via his Hollywood-based company, Red Granite Capital.
"On June 20, 2012, US$41 million was transferred from the Red Granite Capital account to the Alsen Chance Account.
"Alsen Chance, a shell company incorporated in the British Virgin Islands and owned by Tan Kim Loong, an associate of Low Taek Jho, was allegedly used to launder misappropriated 1MDB funds.
"Of this amount, $13 million was transferred to Las Vegas Sands LLC, with $11 million designated for 'player 3454296' and $2 million for Tan Kim Loong, identified as player number 4678710.
"Research indicates that Las Vegas Sands LLC is a casino and resort company," he said when testifying in the 1MDB civil lawsuit against Riza Aziz, whose real name is Riza Shahriz Abdul Aziz.
The company also named Riza's companies Red Granite Pictures Inc and Red Granite Capital Ltd as defendants for receiving around US$248 million in funds they misused for personal gain, including financing a film and purchasing various properties.
On July 23, 2012, a total of US$7,350,500 and US$ 1,300,000 were credited to the Alsen Chance Account from Las Vegas Sands LLC.
He said these payments were marked "funds due from Low Taek Jho" and "funds due from Tan Kim Loong".
"It seems likely these funds were the balance of those paid out to Las Vegas Sands LLC on July 10 and 11, 2012, and therefore represent the funds transferred from Red Granite Capital to Alsen Chance," he said.
On May 7, 2021, 1MDB and its three subsidiaries sued Riza and his two companies for allegedly receiving around US$248 million in funds they misused for personal gain, including financing a film and purchasing various properties.
1MDB and three subsidiaries – 1MDB Energy Holdings Limited, 1MDB Energy Limited and 1MDB Energy (Langat) Limited – filed the suit.
They are seeking a declaration that Riza is responsible for the misappropriated funds and demand repayment.
The trial before Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues.