On February 28th, Indonesian police seized the superyacht Equanimity, moored in Bali, at the request of the United States Department of Justice (DOJ). Equanimity is a 300′ luxury yacht owned by Malaysian financier Jho Low. The yacht, which is reported to have cost $260 million, was built in the Netherlands by Oceanco and delivered in 2014.  

The arrest was part of the unfolding, convoluted, and downright bizarre scandal centered on the 1Malaysia Development Berhad (1MDB.) The corruption scandal involves money laundering, movie production, art, real estate, rappers, movie stars, investment bankers, and most recently, the possible involvement of a Trump fundraising official. And, of course, Jho Low’s lovely yacht.  

1Malaysia Development Berhad (1MDB) is a Malaysian government investment company set up in 2009 by Prime Minister Najib Razak. It was intended to encourage investment in the region and to make Jakarta a financial hub. Instead, it quickly devolved into a massive kleptocracy. Of the almost $12 billion borrowed by 1MDB, an estimated $4.2 billion is alleged to be “irregular transactions.” One of these included the transfer of $681 million into the prime minister’s personal bank account, as well as the purchase of luxury items including the seized yacht.
The DOJ, through its Money Laundering and Asset Recovery Section, is attempting to recover $1.7 billion in assets tied to the conspiracy. Reuters quotes Attorney General Jeff Sessions saying, “This is kleptocracy at its worst.”  Sessions said “allegedly corrupt officials” in 1MDB had reportedly spent $200 million on real estate in Southern California and New York, $130 million on artwork, invested $100 million in an American music label and $265 million on the yacht.

The yacht Equanimity, which has been valued in media accounts between $250 to 265 million, is reported to be owned by Low Taek Jho, better known as Jho Low. He served as an informal advisor to 1MDB and is alleged to have stolen $400 million of 1MDB funds to purchase luxury items, including the $260 million yacht. Indonesia is now working with the FBI on the paperwork to hand the yacht over to the US.

While Equanimity is one of the valuable assets seized, it is also one of the more conventional. Also in the DOJ’s sights is Riza Aziz, Prime Minister Najib’s stepson and a friend of Jho Low, who co-founded the movie production company which produced  “Wolf of Wall Street.”  The production company paid $60 million to settle a U.S. Justice Department claim that it financed the film with money siphoned from 1MDB. There is a wonderful irony that the movie, “Wolf of Wall Street,” about a Wall Street crook, was apparently funded with stolen money. 

When Leonardo DiCaprio heard of the settlement, he contacted the FBI and ultimately surrendered two paintings, a $3.2 Million Picasso and $9 Million Basquiat to US government. He also surrendered Marlon Brando’s Oscar, which like the paintings, had been a gift from Jho Low. The Australian actress, Miranda Kerr, surrendered jewelry valued at several million dollars, which was also a gift from Jho Low. Neither DiCaprio nor Kerr is accused of any wrongdoing.

The DOJ is also going after additional art, not related to DiCaprio, valued at around $100 million, owned by Jho Low. 

Perhaps the weirdest iteration of this already strange scandal began when it is alleged that Jhon Low used rapper Pras Michel to solicit Trump fundraiser Elliott Broidy and his wife Robin Rosenzweig to attempt to use their influence to convince the DOJ to drop their investigations. In leaked emails, Broidy and Rosenzweig negotiated a $75 million fee to be paid if they were successful in killing the investigation. Broidy also prepared “talking-points” for the Malaysian Prime Minister for a recent trip the White House. 

In 2016 Broidy served as a vice chairman of the Trump Victory Committee, a joint fundraising committee between the Trump campaign and the RNC.  He later served as a vice chairman of the Presidential Inaugural Committee and in April 2017 was named a national deputy finance chairmen of the RNC. 

In 2009, Broidy provided $1 million in illegal gifts to New York State pension authorities. Broidy pled guilty to a felony charge of bribing the New York State Comptroller. The charge was pled down to a reduced to a misdemeanor when Broidy turned state’s evidence. In the plea deal, Broidy paid $18 million in restitution.

It is unlikely that the US government will retain the yacht Equanimity. The goal of the US Kleptocracy Asset Recovery Initiative is to return the stolen funds. As noted by the NYTimes, the hard part is returning the seized money to the people of the countries affected without enriching a kleptocrat all over again.