1Malaysia Development Bhd (1MDB), the scandal-plagued Malaysian state fund, announced on Monday that it has filed a legal claim exceeding US$1 billion (RM4.5 billion) against corporate services provider Amicorp Group and its CEO, Toine Knipping. The lawsuit accuses the firm of knowingly facilitating fraudulent transactions totaling over US$7 billion. The claim, lodged in the British Virgin Islands, targets eight entities within Amicorp and its CEO, alleging their crucial role in enabling the defrauding of the sovereign wealth fund between 2009 and 2014, according to a statement from 1MDB.

Amicorp Group has yet to respond to a request for comment. Malaysian and U.S. investigators had earlier estimated that around US$4.5 billion was misappropriated from 1MDB since its founding in 2009, involving former Prime Minister Datuk Seri Najib Razak, Goldman Sachs employees, and high-ranking officials. Najib, who is currently imprisoned, denies any wrongdoing.

1MDB claims that Amicorp was involved in creating and managing a complex conspiracy, using layers of shell companies, fake transactions, and fraudulent financial structures to conceal the true origins and destinations of the funds.

1MDB stated that the stolen funds were allegedly routed through Singapore, Barbados, Curacao, Hong Kong, and the British Virgin Islands. "There is, in our view, strong evidence to suggest that Amicorp - at the highest levels - knew they were involved in a dishonest and illegal money-laundering scheme designed to transfer large sums of cash away from its intended beneficiary - the people of Malaysia," a spokesperson for 1MDB said in the statement.

Details on Amicorp Group

Amicorp Group is a global provider of corporate services, specializing in wealth management, trust services, and the creation and management of complex financial structures. Founded in the early 1990s, the firm offers a wide range of services including company formation, asset protection, and tax optimization strategies for high-net-worth individuals, corporations, and institutional clients. With offices across key financial hubs such as Hong Kong, Singapore, and the British Virgin Islands, Amicorp facilitates cross-border transactions and manages international structures, often operating in sectors requiring sophisticated financial and legal expertise. Their role in managing and structuring financial deals has brought them under scrutiny in various legal matters.

Past Allegations and Investigations

The 1MDB scandal contributed to the downfall of Malaysian Prime Minister Najib Razak's government in 2018. Najib is currently serving a six-year prison sentence for corruption linked to the massive financial scandal at 1MDB. He has appealed to serve the remainder of his sentence under house arrest, with a hearing scheduled for January 6. In the U.S., the Department of Justice (DOJ) launched an investigation into the misappropriation of funds, seizing assets linked to the scandal, including luxury real estate and artworks. Goldman Sachs also faced scrutiny, with charges against its former employees for their role in facilitating the fraudulent bond sales. These investigations have underscored the global nature of the financial wrongdoing.