Malaysian national extradited to the United States on embezzlement and FCPA charges in 1MDB Fund scheme
On May 6, the DOJ announced that a Malaysian national was extradited to the United States from Malaysia on charges of conspiracy to embezzle and to violate the FCPA’s bribery and accounting provisions in connection with a scheme relating to the 1Malaysia Development Berhad (1MDB) Fund. Ng Chong Hwa, also known as Roger Ng, was a former Managing Director at a financial institution. The indictment against him alleges that between 2009 and 2014, he conspired with others to launder billions of dollars embezzled from 1MDB, including money from three bond offerings underwritten by the financial institution in 2012 and 2013, and that he conspired to bribe government officials in Malaysia and Abu Dhabi to obtain and retain business for the financial institution, including the bond transactions. DOJ alleges that the financial institution received approximately $600 million in fees and revenues from its work for 1MDB, and that Ng and his co-conspirators embezzled more than $2.7 billion from the 1MDB bond deals. In his first court appearance, Ng pleaded not guilty to the charges, and press coverage reported a federal magistrate judge’s statement that DOJ and Ng are engaged in plea negotiations, but Ng’s defense counsel denied the judge’s characterization.
As detailed in prior FCPA Scorecard coverage, alleged co-conspirator and former managing director of the same financial institution, Tim Leissner, pleaded guilty in November 2018 to conspiracy to violate the FCPA and to commit money laundering. Another charged co-conspirator, Low Taek Jho, has not appeared in court.