US forfeits New York luxury apartment tied to alleged 1MDB fund misappropriation

The United States Department of Justice (DOJ) has secured a court order forfeiting a luxury apartment in New York allegedly purchased using funds misappropriated from 1Malaysia Development Berhad (1MDB), in the latest asset recovery linked to the global corruption scandal.

In a statement issued on 27 May 2026, the DOJ said the forfeiture also covered rental income generated from the property, resolving a civil forfeiture case seeking recovery of more than US$6 million in assets connected to an international money laundering conspiracy involving the Malaysian sovereign wealth fund.

According to the DOJ, the condominium unit was allegedly purchased for the benefit of May Ling Catherine Tan, described by US authorities as a personal assistant to fugitive financier Low Taek Jho, better known as Jho Low.

US authorities alleged that Tan profited from the property by retaining rental proceeds generated from the apartment.

“Under the forfeiture order entered in this case, the condominium and rental proceeds held by Tan will be forfeited to the US government,” the DOJ said in its statement released by the Office of Public Affairs.

The civil forfeiture proceedings were filed in the United States District Court for the Central District of California.

US investigators alleged that billions of dollars belonging to 1MDB were misappropriated between 2009 and 2015 by “high-level officials of 1MDB and their associates” together with Low through a scheme involving international money laundering and embezzlement.

Luxury assets allegedly purchased with diverted funds

The DOJ reiterated longstanding allegations that funds intended for Malaysia’s economic development were instead diverted into luxury assets and investments across several countries.

1MDB was established by the Malaysian government to promote economic development through global partnerships and foreign direct investment.

According to US prosecutors, funds linked to 1MDB were allegedly spent on luxury properties in New York, Beverly Hills and London, as well as a 300-foot superyacht and artworks by Claude Monet and Vincent van Gogh.

The DOJ also alleged that misappropriated funds were channelled into multiple commercial ventures and entertainment-related investments.

These allegedly included the boutique hotel sector in Beverly Hills, the production company behind the Oscar-nominated film The Wolf of Wall Street, the redevelopment of Manhattan’s Park Lane Hotel, and investments in EMI, described by the department as the world’s largest private music-rights holder.

“As alleged, other funds were provided to various public officials and co-conspirators,” the DOJ stated.

The department said the latest forfeiture formed part of wider efforts by US authorities to recover assets allegedly linked to the 1MDB scandal, which triggered investigations and enforcement actions across multiple jurisdictions over the past decade.

International cooperation in investigation

The Federal Bureau of Investigation’s International Corruption Squad in New York is leading the investigation.

The DOJ said significant assistance had been provided by authorities in Malaysia, Singapore, Switzerland, the United Kingdom, Luxembourg, Indonesia, Latvia and France.

The department specifically acknowledged cooperation from Malaysia’s Attorney General’s Chambers, the Royal Malaysia Police and the Malaysian Anti-Corruption Commission (MACC).

Other agencies named by the DOJ included the UK Financial Conduct Authority, the UK National Crime Agency, Singapore Police Force’s Commercial Affairs Division, and authorities from Switzerland, Luxembourg and France.

The DOJ also said the Money Laundering and Asset Recovery Section’s International Unit investigates and prosecutes cross-border money laundering schemes involving transnational criminal organisations, foreign official corruption and offences affecting the US financial system.

Trial Attorney Barbara Levy from the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section is prosecuting the civil forfeiture case.

The DOJ said the case was supported by the US Attorney’s Office for the Central District of California, the department’s Office of International Affairs and the US Marshals Service.

Jho Low remains fugitive

Low remains one of the central figures in the 1MDB scandal and has evaded arrest for years despite criminal charges filed by US authorities in 2018.

US prosecutors accused Low of orchestrating one of the world’s largest financial fraud schemes involving Malaysia’s sovereign wealth fund.

According to US allegations, at least US$4.5 billion was siphoned from 1MDB through fraudulent transactions, shell companies and offshore bank accounts.

Federal prosecutors also alleged that Low and two former Goldman Sachs Group bankers arranged approximately US$2 billion in bribes to foreign officials.

US authorities alleged that another US$1 billion in kickbacks was distributed among participants involved in the scheme.

Court filings and prosecutors’ allegations further stated that Low personally received at least US$1.42 billion from the operation.

The alleged recipients of funds included former Malaysian Prime Minister Najib Razak, who was later convicted and imprisoned in Malaysia over cases linked to the 1MDB scandal.

Pardon request disclosed

Earlier reports indicated that Low had formally submitted a pardon application to US President Donald Trump.

A notice published on the DOJ website confirmed that an application filed under the name “Taek Jho Low” sought a “Pardon after Completion of Sentence”.

Low, however, has not been convicted in the United States and remains a fugitive.

The DOJ statement released on 27 May did not reference the pardon request.

The 1MDB scandal has resulted in investigations, prosecutions and asset seizures in several countries since allegations first emerged more than a decade ago.

US authorities have previously described the matter as one of the largest kleptocracy-related asset recovery efforts ever undertaken by the department.

The DOJ said individuals with information concerning proceeds of foreign corruption located in or laundered through the United States could contact federal law enforcement agencies or submit information through the FBI’s reporting channels.