A Malaysian businessman and international fugitive used money embezzled from a government development fund to gamble in Las Vegas. [Image: Shutterstock.com]

High stakes fraud

Malaysian businessmen used $13m siphoned from a government development fund to gamble on high-stakes games in Las Vegas, a court in Singapore heard on Monday.

International fugitive Low Taek Jho, also known as Jho Low, allegedly transferred the money to Las Vegas Sands (LVS) properties with an associate, Erik Can Kim Loong, to play high-stakes games at casinos including baccarat. 

called the “largest kleptocracy case to date” by the US Department of Justice

The money is part of over $4.5bn which was stolen from the Malaysia Development Berhard (1MDB) fund. The case has been called the “largest kleptocracy case to date” by the US Department of Justice, and involved hundreds of individuals in government, banking, business and entertainment.

Low has long been accused of masterminding the scheme, which saw the money used to buy luxury items, fund lavish lifestyles, and even finance Hollywood films.

Money trail uncovered

Low already had a reputation as a high-stakes gambler, with a marketing executive for The Venetian revealing in 2022 that Low had gambled over $87m on baccarat at the casino.

A case was then brought by 1MDB against several companies accused of handling around $248m of the stolen funds, including Red Granite Pictures Inc. and Red Granite Capital Ltd. 

Both companies are controlled by Riza Aziz, the stepson of former Malaysian prime minister Najib Razak, who was imprisoned for 12 years in 2018 after being accused of siphoning $700m from the fund.

According to testimony from UK-based financial fraud investigator Richard Templeman, Red Granite Capital then allegedly transferred $41m to a shell company named Alsen Chance, which was set up solely to aid the embezzlement scheme. From here, $13m was transferred to LVS, with Low receiving $11m for gambling purposes at the casino, and Tan getting $2m.

Low profile

Low is wanted by international authorities and is believed to be hiding in China. His current state is a far cry from his flamboyant and extravagant lifestyle which not only saw him gamble millions in high-stakes casino games, but also rub shoulders with the Hollywood elite.

Low is alleged to have given a $325,000 Ferrari to Kim Kardashian as a wedding present, and also gave numerous works of art, including Picassos and Basquiats, to Leonardo DiCaprio. The actor later returned the gifts.

Perhaps most fittingly, Low was also a major investor in the production of the Martin Scorses film The Wolf of Wall Street, which deals with the rise and fall of a flamboyant high-level financial fraudster.