Party With Stolen Money
The Story
A young financier built parties, yachts, and a Hollywood blockbuster on $4.5 billion stolen from his own country — then vanished without a trace.**Become a supporter of this podcast: https://www.spreaker.com/podcast/dark-american-crime--7005371/support.
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Speaker 1: Today's true crime episode. Picture a birthday party in Las Vegas.
Speaker 1: The year is twenty twelve. A man not yet thirty
Speaker 1: years old has rented out an entire nightclub, and the
Speaker 1: champagne alone for the evening will cost more than most
Speaker 1: people make in a decade. Britney Spears is about to
Speaker 1: pop out of a giant cake. Paris Hilton is somewhere
Speaker 1: near the bar. Leonardo DiCaprio is laughing at a private table,
Speaker 1: and within a year his name will be attached to
Speaker 1: one of the most celebrated films in Hollywood, a movie
Speaker 1: about greed, excess and the seductive, hollow thrill of stolen money.
Speaker 1: The irony of that is almost too perfect. Because the
Speaker 1: man throwing this party, the man footing this bill, the
Speaker 1: man whose signature appears on wire transfers moving hundreds of
Speaker 1: millions of dollars across a web of shell companies stretching
Speaker 1: from Kuala Lumpur to Zurich to the Cayman Islands. That
Speaker 1: man is, at this very moment stealing from his own country.
Speaker 1: His name is low Take Joe. The world would come
Speaker 1: to know him as Joe lo and by the time investigators,
Speaker 1: journalists and prosecut on three continents finished untangling what he did.
Speaker 1: They would call it one of the largest financial crimes
Speaker 1: in human history, a theft of more than four and
Speaker 1: a half billion dollars, a theft so audacious, so wrapped
Speaker 1: up in glamour and celebrity and political power, that it
Speaker 1: would topple a government, implicate one of the most prestigious
Speaker 1: banks on Wall Street, and leave its architect to this
Speaker 1: day a fugitive that no government on earth has managed
Speaker 1: to catch. This is the story of one MDB. This
Speaker 1: is the story of how a sovereign wealth fund created
Speaker 1: with the stated mission of building a better Malaysia became
Speaker 1: instead the private piggybank of a prime minister and the
Speaker 1: playground of a warton educated con artist with a genius
Speaker 1: for making powerful people believe exactly what he wanted them
Speaker 1: to believe. To understand how this happened, you have to
Speaker 1: start with the man who was, on paper the architect
Speaker 1: of Malaysia's future. Najib Brazak became Prime Minister of Malaysia
Speaker 1: in two thousand and nine inheriting the leadership of UMNO,
Speaker 1: the United Malay's National Organization, a party that had ruled
Speaker 1: the country in one form or another without interruption since
Speaker 1: independence from Britain in nineteen fifty seven. Najib was a
Speaker 1: child of the Malaysian establishment. His father had been the
Speaker 1: country's second prime minister. He had been groomed for power
Speaker 1: his entire life, and in two thousand and nine, not
Speaker 1: long after taking office, Najib announced the creation of a
Speaker 1: new state investment vehicle. It would be called One Malaysia
Speaker 1: Development Barehood one MDB for short, and its purpose, according
Speaker 1: to the official language, was development, infrastructure, energy projects, job creation.
Speaker 1: A modern prosperous Malaysia funded by a sovereign wealth fund
Speaker 1: that would attract foreign investment and recycle it into the
Speaker 1: nation's future. It sounded on paper like exactly the kind
Speaker 1: of ambitious nation building project that a young, reform minded
Speaker 1: prime minister might champion. The man who helped Najib design it,
Speaker 1: who whispered the architecture of one MDB into existence, was
Speaker 1: barely out of university. Joe Lowe had grown up in Penang,
Speaker 1: the son of a businessman of middling wealth, comfortable but
Speaker 1: nowhere near the financial stratosphere he would eventually claim to inhabit.
Speaker 1: He'd been educated at Harrow, the elite British boarding school
Speaker 1: and then at the University of Pennsylvania's Wharton School, one
Speaker 1: of the most prestigious business programs in the world. And
Speaker 1: somewhere in those years Low developed two extraordinary talents that
Speaker 1: would define the rest of his life. An instinct for
Speaker 1: making himself indispensable to powerful people and an utter, breathtaking
Speaker 1: shamelessness about lying to get what he wanted. Low had
Speaker 1: no official position at one MDB. He held no title,
Speaker 1: no formal seat on its board, but almost from the
Speaker 1: beginning he was the man pulling the strings behind the curtain,
Speaker 1: consulted on every major decision, present in every important meeting,
Speaker 1: the human conduit through which money allegedly flowed from the
Speaker 1: Gulf into Malaysia, and then investigators would later show into
Speaker 1: his own pockets. His pitch to Najib, according to later
Speaker 1: reporting and trial testimony, was elegant in its cynicism. One
Speaker 1: MDB wouldn't just fund infrastructure. It could also become something else,
Speaker 1: a war chest, a source of money that Najib could
Speaker 1: quietly direct toward political patronage, toward keeping UMNO's machine well oiled,
Speaker 1: toward buying the kind of loyalty that wins elections. On
Speaker 1: the surface, this spending could be dressed up as corporate
Speaker 1: social responsibility. Underneath it would be exactly what it sounds like,
Speaker 1: a slush fund. The mechanics of the theft, once you
Speaker 1: see them laid out, have a kind of dark elegance
Speaker 1: to them, the way a magic trick looks impossible until
Speaker 1: someone shows you the hidden compartment. The first major scheme
Speaker 1: involved a joint venture with PetroSaudi International, a Saudi Arabian
Speaker 1: oil company. In two thousand and nine, one MDB announced
Speaker 1: a billion dollar investment into this joint venture, supposedly to
Speaker 1: fund oil and gas projects in the region. But of
Speaker 1: that billion dollars, investigators would later determine the vast majority
Speaker 1: never went anywhere near an actual oil field. Instead, it
Speaker 1: was diverted routed through a Saciales registered company with a
Speaker 1: name almost comically generic, good Star Limited and Good Star,
Speaker 1: it turned out, was controlled not by PetroSaudi, not by
Speaker 1: any legitimate joint venture partner, but by Joe Lowe himself.
Speaker 1: A billion dollars meant to develop a nation vanished into
Speaker 1: an account that one twenty something financier could access at will.
Speaker 1: The second and third schemes were if anything, even more
Speaker 1: brazen because this time they didn't just involve a sketchy
Speaker 1: joint venture partner in the Gulf. This time they involved
Speaker 1: Goldman Sachs, one of the most respected investment banks on
Speaker 1: the planet. Between twenty twelve and twenty thirteen, Goldman Sachs
Speaker 1: helped one MDB raise more than six billion dollars through
Speaker 1: a series of bond offerings, ostensibly to fund infrastructure projects
Speaker 1: and to support what was described as new strategic economic
Speaker 1: initiatives between Malaysia and Abu Dhabi. Goldman's fees for this
Speaker 1: work were, by any normal standard, obscene, reportedly around six
Speaker 1: hundred millillion dollars, multiples of what such bond sales would
Speaker 1: typically cost a bank to underwrite. But Goldman prosecutors would
Speaker 1: later allege wasn't just collecting an outsized fee for ordinary work.
Speaker 1: The bank's own bankers, specifically a star deal maker named
Speaker 1: Tim Leisner, who ran Goldman's Southeast Asia operations, were prosecutors said,
Speaker 1: directly involved in helping move the stolen money and in
Speaker 1: paying roughly two billion dollars in bribes to government officials
Speaker 1: across Malaysia and Abu Dhabi, including prosecutors alleged to Najeeb himself.
Speaker 1: Picture the scale for a moment. A billion dollars routed
Speaker 1: through a shell company, then another billion, then another raised
Speaker 1: through bonds with the implicit credibility of one of the
Speaker 1: most trusted names in global finance attached to them, then
Speaker 1: siphoned into an elaborate network of offshore entities with names
Speaker 1: designed to mean nothing to anyone, companies that existed for
Speaker 1: no purpose other than to make stolen money harder to trace,
Speaker 1: And all the while, the public face of one MDB
Speaker 1: remained relentlessly, almost defiantly upbeat press releases, groundbreaking ceremonies, glossy
Speaker 1: brochures about a glittering new financial district planned for Kuala Lumpur.
Speaker 1: The fund's official narrative and its actual operations existed in
Speaker 1: two entirely separate universes, and for years almost no one
Speaker 1: outside a tiny circle of people knew it. Where did
Speaker 1: the money go? This is the part of the story
Speaker 1: that made one MDB more than just a financial crime.
Speaker 1: It's the part that made it a global spectacle. Joe
Speaker 1: Lowe used the stolen billions to construct, almost overnight, the
Speaker 1: persona of a billionaire playboy financier, the kind of fabulously
Speaker 1: wealthy young man who seemed to exist simply to be
Speaker 1: photographed at the right parties with the right people. He
Speaker 1: bought luxury real estate across three continents, penthouses in New York,
Speaker 1: mansions in Beverly Hills, properties in London. He purchased a
Speaker 1: super yacht called the Equanimity, valued at around two hundred
Speaker 1: and fifty million dollars, complete with a helipad and an
Speaker 1: infinity pool. He spent over three hundred million dollars on
Speaker 1: fine art, including works by Monette, Bosciot and Van Go,
Speaker 1: at one point paying nearly forty nine million dollars for
Speaker 1: a single Boskiocht painting, a record setting sum for the
Speaker 1: artist's work. He spent eighty five million dollars on parties
Speaker 1: in a single nine month stretch. He once ran up
Speaker 1: one hundred and sixty thousand dollars tab at a single
Speaker 1: New York City club in one night. He sent two
Speaker 1: dozen bottles of Christal Champaigne to a celebrity's table simply
Speaker 1: to be noticed. He paid celebrities reel a List celebrities
Speaker 1: appearance fees just to show up at his events, so
Speaker 1: that the parties would feel less like a young financier's
Speaker 1: birthday celebration and more like a scene out of a
Speaker 1: film about a young financier's birthday celebration. And then there's
Speaker 1: the detail that makes the story genuinely surreal. Low actually
Speaker 1: helped finance one of those films. Together with Najeeb's own
Speaker 1: step son, Reza Aziz, Low co founded a production company
Speaker 1: called Red Granite Pictures, and in twenty thirteen, Had Granite
Speaker 1: released a movie that would go on to earn five
Speaker 1: Academy Award nominations. Martin scorsesees The Wolf of Wall Street,
Speaker 1: starring Leonardo DiCaprio as a stockbroker whose entire life is
Speaker 1: a monument to fraud, excess, and the corrupting power of
Speaker 1: stolen money. Prosecutors would later allege that Red Granite financed
Speaker 1: the film, along with several others, using money embezzled from
Speaker 1: one MDB. Low himself was thanked by name in the
Speaker 1: film's closing credits. A man was stealing billions of dollars
Speaker 1: from a developing nation's sovereign wealth fund, and he used
Speaker 1: part of that stolen fortune to bankroll a movie celebrating
Speaker 1: the glamour of financial fraud. DiCaprio would later return artwork
Speaker 1: a Picasso a Bosciot that had been gifted to him
Speaker 1: using one MDB money. Once the scandal broke and the
Speaker 1: US Department of Justice came calling, the supermodel Miranda Kerr,
Speaker 1: who dated Low for a time, returned eight million dollars
Speaker 1: in diamond jewelry. Low had reportedly purchased a quarter million
Speaker 1: dollar white ferrari as a wedding gift for a famous
Speaker 1: reality star. This wasn't subtle theft. This was theft conducted
Speaker 1: in plain sight, dressed up as the natural extravagance of
Speaker 1: new money, hiding behind the simple fact that nobody wanted
Speaker 1: to ask too many questions of a man who seemed
Speaker 1: to have an endless supply of cash and an endless
Speaker 1: willingness to spend it on the people around him. For years,
Speaker 1: this worked. It worked because Lowe was extraordinarily good at
Speaker 1: his particular brand of confidence game, flattering the right officials,
Speaker 1: cultivating relationships with royal families in the Gulf, presenting himself
Speaker 1: as a man with connections so deep and so valuable
Speaker 1: that nobody wanted to be the one to scare him
Speaker 1: away by asking inconvenient questions. It worked because Goldman Sachs,
Speaker 1: for all its supposed rigor, either failed to ask the
Speaker 1: obvious questions about where six billion dollars in bond proceeds
Speaker 1: was actually going, or, as prosecutors would later allege, some
Speaker 1: of its own employees knew exactly where the money was
Speaker 1: going and helped it get there anyway. But theft on
Speaker 1: this scale, sustained over years eventually leaves footprints, and in
Speaker 1: twenty fifteen those footprints started to surface. A Surowak born
Speaker 1: British journalist named Claire Rikasel Brown, who ran a small
Speaker 1: investigative blog called The Sarawak Report, began publishing detailed reports
Speaker 1: alleging that hundreds of millions of dollars connected to one
Speaker 1: MDB had moved into accounts controlled by Joe Lowe. Around
Speaker 1: the same time, the Wall Street Journal, working in part
Speaker 1: from a massive trove of leaked documents reportedly handed over
Speaker 1: by a former PetroSaudi employee, published its own bombshell reporting,
Speaker 1: and the headline finding was the one that turned this
Speaker 1: from a story about a mismanaged sovereign wealth fund into
Speaker 1: a story about a sitting head of state. Nearly seven
Speaker 1: hundred million dollars connected to one MDB, the journal reported,
Speaker 1: had been deposited directly into the personal bank accounts of
Speaker 1: Prime Minister Nijibrazak. This is the moment the cover up
Speaker 1: began in earnest because Najib did not resign, he did
Speaker 1: not call for an independent investigation and stepped back to
Speaker 1: let it run its course. Instead, he moved to shut
Speaker 1: the inquiry down from the inside. Malaysia's Attorney general at
Speaker 1: the time had begun assembling a task force to investigate
Speaker 1: the allegations swirling around one MDB. He was removed from
Speaker 1: his position. The new Attorney general who replaced him would
Speaker 1: later clear Najib of any wrongdoing, characterizing the hundreds of
Speaker 1: millions of dollars in his personal accounts as a personal
Speaker 1: donation from a member of the Saudi royal family, a
Speaker 1: gift supposedly with no strings attached, no connection whatsoever to
Speaker 1: the sovereign wealth fund his own government had created. Journalists
Speaker 1: and politicians who pursued the story too aggressively found themselves targeted.
Speaker 1: One Malaysian politician who had submitted evidence about one MDB
Speaker 1: to the Swiss Attorney General and filed police reports against
Speaker 1: Najib and Low in Hong Kong was arrested and charged
Speaker 1: under Malaysia's Security Offenses Act, a law typically reserved for
Speaker 1: terrorism cases, on the theory that his attempts to expose
Speaker 1: the scandal amounted to an attack on Malaysia's banking system.
Speaker 1: He and his lawyer were barred from leaving the country.
Speaker 1: The Sarawak Sport's website was blocked within Malaysia. A respected
Speaker 1: Malaysian financial newspaper that had published damaging reporting on one
Speaker 1: MDB had its publishing license suspended for three months. This
Speaker 1: is what a cover up looks like when it's being
Speaker 1: run by the full machinery of a state. Not a
Speaker 1: single dramatic act of concealment, but a thousand small acts
Speaker 1: of suppression, each one designed to make the truth just
Speaker 1: a little bit harder to say out loud, and each
Speaker 1: person who said it anyway just a little more afraid.
Speaker 1: But the story had already escaped Malaysia's borders, and outside
Speaker 1: the country, no Prime Minister's office could make it disappear.
Speaker 1: The United States Department of Justice opened its own investigation,
Speaker 1: eventually describing one MDB as the largest case in the
Speaker 1: history of its Kleptocracy Asset Recovery Initiative, a program specifically
Speaker 1: designed to claw back asset stolen by corrupt foreign officials.
Speaker 1: Singapore's banking regulators began investigating the flow of one MDB
Speaker 1: linked money through accounts at Singaporean banks. Switzerland's attorney general
Speaker 1: opened a money laundering probe. Investigators in Hong Kong and
Speaker 1: Luxembourg in the United Arab Emirates all began pulling their
Speaker 1: own threads, and in July of twenty sixteen, the US
Speaker 1: Department of Justice dropped what amounted to a thunderclap, a
Speaker 1: formal announcement that it believed more than four and a
Speaker 1: half billion dollars had been siphoned out of one MDB
Speaker 1: by senior Malasian officials and their associates, and that the
Speaker 1: United States would be seeking the forfeiture of more than
Speaker 1: a billion dollars in assets, yacht's real estate, artwork, the
Speaker 1: proceeds of The Wolf of Wall Street itself that had
Speaker 1: been purchased with the stolen money. The Attorney General of
Speaker 1: the United States at the time called it, in a
Speaker 1: phrase that would be quoted endlessly in the years that followed.
Speaker 1: Kleptocracy at its worst. Two years later, the dam finally
Speaker 1: broke in Malaysia itself. In May twenty eighteen, Malaysians went
Speaker 1: to the polls in a general election dominated by public
Speaker 1: fury over one MDB and a rising cost of living
Speaker 1: that many voters connected directly to the billions that had
Speaker 1: been stolen from the cun Tree's own development fund. UMNO,
Speaker 1: the party that had governed Malaysia unbroken for sixty one
Speaker 1: years since independence, lost, Najib Razak was voted out of office.
Speaker 1: What happened next had the quality of a dam breaking
Speaker 1: all at once. Within days, Najib and his wife, Rosma
Speaker 1: Manser were barred from leaving the country. Malaysian police raided
Speaker 1: properties connected to the couple and seized what they described
Speaker 1: as the largest hall in the nation's history, cash and
Speaker 1: valuables worth somewhere between two hundred and twenty and two
Speaker 1: hundred and seventy million dollars, including more than twelve thousand
Speaker 1: pieces of jewelry, four hundred and twenty three luxury watches,
Speaker 1: and five hundred and sixty seven designer handbags from thirty
Speaker 1: seven different brands. Investigators reportedly needed days just to catalog
Speaker 1: what they found. Najib was arrested. He was eventually hit
Speaker 1: with dozens of separate criminal charges abuse of power, money laundering,
Speaker 1: criminal breach of trust connected to billions of ring it
Speaker 1: in misappropriated funds, and in twenty twenty, after a trial
Speaker 1: that captivated the country, he was convicted on seven counts
Speaker 1: related to a smaller piece of the broader scheme, involving
Speaker 1: funds from a one m d B unit known as
Speaker 1: SRC International. He was sentenced to twelve years in prison,
Speaker 1: later reduced. He did not go quietly even as the
Speaker 1: verdicts mounted. Najib maintained, as he does to this day,
Speaker 1: that he was the victim of a political conspiracy, that
Speaker 1: he had been deceived by those around him, that he
Speaker 1: never knowingly took stolen money. In twenty twenty, amid the unraveling,
Speaker 1: leaked audio recordings reportedly captured Najib asking the then crowned
Speaker 1: prints of the United Arab Emirates for help fabricating a
Speaker 1: loan document, a paper trail designed to make it look
Speaker 1: as though money received by his step son had come
Speaker 1: from a legitimate Emoradi investment fund rather than from one
Speaker 1: MDB itself. It was if the recordings are what investigators
Speaker 1: say they are a cover up of the cover up,
Speaker 1: a sitting and then former head of state caught in
Speaker 1: the act of trying to manufacture a more convenient version
Speaker 1: of the truth. And what of Joe Low, the young
Speaker 1: man at the very center of it all, the architect
Speaker 1: who designed the scheme and who, by US prosecutor's own estimate,
Speaker 1: personally pocketed something in the range of one and a
Speaker 1: half billion dollars. He vanished As the scandal accelerated in
Speaker 1: twenty fifteen and twenty sixteen, Low simply stopped appearing in public,
Speaker 1: the parties stopped, the yachts sailed without him in the headlines.
Speaker 1: In twenty eighteen, the US Department of Justice formally indicted Low,
Speaker 1: along with two former Goldman Sachs bankers, on charges connected
Speaker 1: to the bond schemes and the bribery that allegedly accompanied them.
Speaker 1: Interpol issued a red notice for his arrest. Malaysia revoked
Speaker 1: his passport multiple countries, Malaysia, Singapore eventually Kuwait would go
Speaker 1: on to charge or sentence him in absentia, racking up
Speaker 1: potential prison terms that combined would keep him behind bars
Speaker 1: for the rest of several lifetimes if he were ever caught,
Speaker 1: but he never was. For years, Lowe's whereabouts were the
Speaker 1: subject of constant rumor Taiwan, Mainland China, various uncertain sightings
Speaker 1: that never quite resolved into a confirmed location. He reportedly
Speaker 1: traveled on multiple passports obtained through citizenship by investment schemes
Speaker 1: in places like Saint Kitts and Nevs and Cyprus. Identities
Speaker 1: purchased the same way a person might buy a piece
Speaker 1: of real estate simply because he had the money to
Speaker 1: do it, and the schemes asked very few questions. It
Speaker 1: would take years of independent investigative work, much of it
Speaker 1: driven by journalists rather than governments, to get closer to
Speaker 1: an answer. Two former Wall Street journal reporters, who had
Speaker 1: broken some of the earliest stories on the scandal and
Speaker 1: later co authored a book about it called Billion Dollar Whale,
Speaker 1: continued chasing Low's trail long after most newsrooms had moved on.
Speaker 1: Their reporting eventually pointed toward an answer. Almost nobody had
Speaker 1: considered that Low wasn't hiding in some obvious tax haven
Speaker 1: or allied nation, but was instead living under a fabricated
Speaker 1: identity in Mainland China, reportedly in a high end neighborhood
Speaker 1: of Shanghai, using a fake Australian passport under a fictitious
Speaker 1: Greek name, allegedly providing quiet strategic advice to Chinese state
Speaker 1: interests navigating Western sanctions. A remarkable second act for a
Speaker 1: man who built his first fortune by stealing from his
Speaker 1: own country. He has never been arrested as recently as
Speaker 1: this year, reports Sue
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