- Unconventional Empires
- Posts
- Jho Low and 1MDB: The $4.5B Empire of Illusion 💰
Jho Low and 1MDB: The $4.5B Empire of Illusion 💰
Finlay Williams
November 16, 2024
2 minute wacky businesses, you can tell your buddies about 🧠
Imagine running a "business" that’s so lucrative, you bankroll The Wolf of Wall Street, party with celebrities, and fund one of the world’s largest sovereign wealth funds. All while making no profit at all. Welcome to the high-stakes circus of 1MDB, a Malaysian government-backed development fund turned financial smoke-and-mirrors masterpiece.
Shell Companies and Sketchy Finance 🧐
In 2009, Malaysian PM Najib Razak launched 1MDB to boost national development. It seemed straightforward, raise money, fund projects, and transform Malaysia. Jho Low, a Wharton grad with ties to G••• •••••• and W••• •••••• •••••••, slid into the scene as the “advisor,” leveraging his connections to help manage the fund. But instead of funding skyscrapers, Low funnelled the money into a labyrinth of offshore accounts, personal yachts, and celebrity film projects.
In 2012, Jho Low set up his master plan, leveraging legitimacy. Partnering with Goldman Sachs (yes, that Goldman) to raise $6.5 billion. Goldman took $600M in fees, 100x the standard cut. Low got Goldman on board by selling the vision of Malaysia’s development. By attaching the fund to a globally respected institution, he deflected suspicion while cooking up one of history’s most intricate money-laundering schemes.
Jho Low on the left
What are the nuggets? 💎
🌮 2009: The Setup
Malaysia’s Prime Minister Najib Razak launched 1MDB to spur national development and reduce poverty. Jho Low, a young financier with elite connections, positioned himself as an "advisor." Without an official title, he wielded extraordinary influence, setting the stage for his grand scheme by exploiting trust at the highest levels of government.
🌮 2012: A Phantom Deal
Low brokered a $2.5B joint venture between 1MDB and PetroSaudi International, a Saudi oil company. On paper, it was a strategic investment. In reality, it was a ruse, Low redirected $1B into a Swiss account he controlled, labelling it “consultancy fees”, who knows what happened with the rest of it…
💰 2013: Goldman’s Golden Goose
Low convinced Goldman Sachs (yes, that Goldman) to underwrite $6.5B in bonds for 1MDB, raising funds under the guise of financing development projects. Goldman pocketed $600M in fees – 100 times the standard rate. Low got Goldman on board by selling the vision of Malaysia’s development. Meanwhile, Low quietly rerouted billions through a network of offshore accounts, presenting the moves as legitimate investments.
💰 2014: The Fake Abu Dhabi Connection
Low escalated his deception with a masterstroke, creating shell companies mimicking Abu Dhabi’s sovereign wealth funds. These fronts “received” billions from 1MDB, money that Low personally siphoned. The fake partnerships lent the operation a veneer of legitimacy, helping him avoid detection for years.
💰 2014-2015: The Spending Binge
With billions in stolen funds, Low financed The Wolf of Wall Street, threw multimillion-dollar parties with celebrities like Paris Hilton, and purchased a $126M superyacht. He bought art, diamonds, and prime real estate in New York and London. The spending wasn’t just indulgent, it was a calculated strategy to cement his image as an untouchable billionaire.
💰 2015: The Debt Bomb Explodes
1MDB’s $11.73B debt surfaced, sparking public outcry. Whistleblowers leaked documents showing $700M had been deposited into PM Najib’s personal accounts. Investigations revealed massive discrepancies, forcing Najib to purge critics from his government to maintain control.
💰 2016: The Global Crackdown
The U.S. Department of Justice declared the 1MDB scandal “the largest kleptocracy case in history.” Investigators across six countries began untangling Low’s labyrinth of offshore accounts and bribery schemes. Authorities seized assets worldwide, including yachts, art, and properties, exposing the scope of the theft.
Reply