Lengthy jail terms sought for duo in Swiss US$1.8bil 1MDB fraud case

 

PetroSaudi chief executive Tarek Obaid and director Patrick Mahony are accused of siphoning US$1.8 billion in 1MDB funds for precious stones, private jets, rented yachts and property in London and Geneva. (AFP pic)

GENEVA: Lawyers for two men accused of embezzling US$1.8 billion from 1MDB began laying out their case today after Swiss state prosecutors sought hefty prison terms.

PetroSaudi chief executive Tarek Obaid, and Patrick Mahony, a director at the Saudi oil exploration and production company, are on trial at Switzerland’s federal criminal court in the southern city of Bellinzona.

They are accused of involvement in a vast embezzlement orchestrated by fugitive financier Low Taek Jho, also known as Jho Low.

Prosecutor Alice de Chambrier yesterday called it the “scam of the century” and branded the defendants as “calculative, manipulative and obscenely greedy”, the Keystone-ATS news agency reported.

She sought a 10-year sentence for Obaid and a nine-year term for his right-hand man.

Prosecutors also requested the detention of the two due to the perceived risk of flight in the gap between the trial and the verdict.

Obaid is a Swiss-Saudi dual national, while Mahony is Swiss-British.

Obaid’s lawyer, Daniel Zappelli, highlighted the absence of former prime minister Najib Razak and Low, and said there were variations in the amounts that the defendants allegedly laundered, Keystone-ATS reported.

The multi-billion-dollar 1MDB financial scandal has led to criminal investigations around the world, including in the US, Switzerland and Singapore.

It is alleged that billions of dollars were pilfered from the fund by a number of people and used to buy items ranging from artwork to a superyacht.

In 2022, Najib was sentenced to 12 years in prison in Malaysia for offences linked to the misuse of public money. In February, his sentence was halved to six years.

The 1MDB scandal led to the fall of Najib’s government in 2018.

During the Swiss trial yesterday, the prosecution requested that assets sequestered by Switzerland be confiscated and returned to 1MDB.

Chambrier said Obaid and Mahony squandered their loot on precious stones, private jets, rented yachts and property in London and Geneva.

She accused them of “extraordinary criminal activity and tenacity” over 10 years between 2009 and 2019, if alleged acts of concealment are included.

The case, being heard by three judges, opened on April 2 and is scheduled to last until the end of the month though the verdict could take months. - FMT