THE US Department of Justice yesterday filed to suspend its civil forfeiture suits to seize billions of dollars worth of assets linked to kleptocracy in Malaysia because the discovery process could jeopardise the criminal investigation it was initiating.

“Such disclosures could result in the destruction of evidence, flight of potential subjects and targets, or the identification and intimidation of potential witnesses,” Special Agent Jill Enyart wrote in a declaration reported in Variety.

The discovery process could also “jeopardise the safety of certain foreign law enforcement personnel” while inhibiting foreign governments from cooperating in the ongoing probe.

The civil suits are now on hold and the federal prosecutors will furnish the court with updates every six months.

Malaysia’s sovereign investment fund 1Malaysian Development Bhd is at the centre of the US government’s investigations into embezzlement, money laundering and corruption in the highest levels of government.

However, Barisan Nasional, the ruling coalition in Malaysia, appears to take a different view of the US prosecutors’ notice to suspend its civil suits.

Its spokesman, BN strategic communications deputy director Eric See-To said the DoJ filing to freeze its civil forfeiture suits meant that the previous US administration had “started an action without sufficient evidence to take the case forward”.

See-To said the action to suspend the civil suits, undertaken by the DoJ under the current Trump administration, could “pave the way for constructive discussions” between Malaysia and the US, given the successful visit of US Secretary of State Rex Tillerson to Kuala Lumpur this week.

“If the US Justice Department has enough grounds to file criminal charges against those individuals, then charge them and let the courts and the individuals involved prove whether they are guilty or innocent. 

“Until such charges are filed, the net effect is that the USA govt has essentially, indefinitely frozen the much-talked about civil suits,” he said.

The US civil forfeiture suits are to recover luxury real estate in the US, a jet airplane, a yacht, diamond jewellery and more bought with allegedly stolen 1MDB money. 

The DoJ alleges that between 2009 and 2015, more than US$4.5 billion (RM19.3 billion) of 1MDB funds was diverted by high-level officials and their associates for their own benefit.

Among those that have been touched by the far-reaching taint of the scandal is Red Granite Pictures, whose films, including “The Wolf of Wall Street” and “Daddy’s Home”, US prosecutors allege were financed with money stolen from 1MDB.

The CEO of the company is Riza Aziz, the stepson of Malaysia’s prime minister, Najib Razak.

Red Granite recently installed Douglas Hansen, a veteran entertainment executive, to serve as an independent fiduciary to oversee the finances of the company and help facilitate a settlement of the government’s civil case. 

The scandal has also touched the some of the biggest stars in the US entertainment industry. Miranda Kerr recently returned US$8.1 million in diamonds allegedly given to her by Malaysian financier Low Taek Jho, whom federal prosecutors say is central to their investigations, and Leonardo DiCaprio also turned over rare artwork, including a Picasso and a Basquiat, as well as an Oscar statue that once belonged Marlon Brando.

In Malaysia, the leaders have maintained that neither 1MDB nor any government official was named as a party in any of the US DoJ’s suits.

“As far as 1MDB is concerned, all its funds have been accounted for,  in addition to the Malaysian Attorney-General’s statements after the DOJ filings that there has been no evidence of any misappropriation of funds,” said See-To. – August 11, 2017.