A Malaysian court heard that US$2.4 million from 1MDB was transferred to Kim Kardashian and Pharrell Williams via Jho Low’s shell company
Malaysia’s High Court was told that a staggering US$2.4milllion had gone out of the coffers of 1Malaysia Development (1MDB) and into the bank accounts of celebrity Kim Kardashian and musician Pharell Williams, via fugitive businessman Low Taek Jho’s shell company Good Star Ltd.
Financial fraud investigator Richard Templeman testified this during a Zoom hearing in the US$6.59 billion lawsuit filed by 1MDB against former Treasury secretary-general Mohd Irwan Serigar Abdullah and former 1MDB CEO Arul Kanda Kandasamy on Monday.
Based on his investigation, the plaintiff’s witness said that by October 25, 2011, 1MDB had transferred US$1.03 billion to Good Star for the benefit of Low, who is also known as Jho Low.
“These funds were transferred through a series of offshore companies and used for, inter alia, the personal benefit of the co-conspirators and their relatives and associates,” he said in his witness statement.
From the billions of dollars that flowed through Good Star from 1MDB, US$2,025,000 was transferred from Good Star to a SunTrust Bank account in the name of Talamasca Inc.
Malaysian officials allege that US$2.4 million from 1MDB was transferred to Kim Kardashian and Pharrell Williams via a shell company controlled by fugitive businessman Jho Low. Photo: MONCLER
The transactions between August 11 and November 17, 2011, carried details of the payments such as “part payment for music production” and “Letter of Agreement DD 3 Nov 2011 Red Spring Investments And Talamasca/Pharrell Williams”.
“I note that publicly available information links Talamasca Inc. with the musician Pharrell Williams.
“I have no further information regarding this transfer of funds,” he said.
Templeman said there were further sums paid from Good Star to other entities, including US$306,000 to reality TV star Kim Kardashian and another US$100,000 to Kardashian and her then-husband Kris Humphries.
The purpose of these transactions, Templeman said, was “currently unknown”.
The legacy of Malaysia’s 1MDB scandal on politics and corruption-fighting
The legacy of Malaysia’s 1MDB scandal on politics and corruption-fighting
Templeman is a director of investigations at Kroll Advisory Ltd, an international advisory firm with specialist expertise in restructuring and insolvency, corporate finance, forensic accounting and investigations, cross-border asset recovery, and creditor services.
He led the ongoing investigations into the funds misappropriated from 1MDB and SRC International, which flowed through liquidated companies.
In May 2021, 1MDB filed a lawsuit against Mohd Irwan and Arul Kanda, accusing them of breach of trust and conspiracy that resulted in US$1.83 billion in losses related to the company’s investment in 1MDB-Petrosaudi Ltd, which was later converted into the Brazen Sky Limited investment, said to be recoverable from the Bridge Global Fund.
1MDB funds were misappropriated by celebrities via Jho Low’s shell company, Good Star Ltd, a Malaysian court heard. Photo: AP
1MDB also alleged that both defendants committed breach of trust and conspiracy by misappropriating US$3.5 billion in company funds paid to Aabar Investments and US$1.265 billion paid to International Petroleum Investment Company on May 9, 2017.
1MDB claimed that Mohd Irwan colluded with Arul Kanda to execute an extension of an employment agreement, paying a substantial amount of 2,905,200 ringgit to Arul Kanda, disregarding 1MDB’s interests, which resulted in losses and damages to the company.
Consequently, 1MDB is seeking US$6.59 billion in damages from both defendants for these violations, and an additional 2.9 million ringgit from Mohd Irwan related to the extension of the employment agreement.
