Jho Low agrees to sell RM161m mansion in Los Angeles

Fugitive businessperson Low Taek Jho has agreed to sell his US$39 million (RM161 million) mansion in Los Angeles, which was believed to have been acquired using misappropriated 1MDB funds and is a subject of forfeiture by the US Department of Justice (DOJ)

In a filing with the US State District Court for the Central District of California last night (this morning Malaysian time), Low's representative and US prosecutors agreed to the sale.

However, this did not mean that Low, who is challenging the forfeiture through Oriole Drive (LA) LLC, was giving up on his claim.

Instead, both parties agree that the property needs to be sold as it was falling into a state of disrepair and any future dispute will be in the form of proceeds from the sale of the property.

"The parties agree that an interlocutory sale of the Defendant Real Property is appropriate and necessary... because the property is at risk of deterioration and damage as it will be uninhabited during the pendency of this litigation if it is not sold to a third party," read the filing.

Furthermore, the filing sighted by Malaysiakini said the expense of keeping the property is excessive and/or is disproportionate to its fair market value.

It said the average monthly maintenance and utility expenses amounted to US$3,750 (RM15,534) and annual insurance cost is US$145,000 (RM600,662) while annual tax expenses are US$500,000 (RM2.07 million).

"The parties are in agreement that... (an) interlocutory sale is appropriate in order to preserve the value of the Defendant Real Property and minimise expenses associated with keeping and maintaining the Defendant Real Property in its current state," it said.

Forfeiture action

The sale will be undertaken by Ernie Carswell & Associates, which was mutually agreed upon.

However, it said if the sale cannot be completed within 270 days, then the US government will have the discretion to appoint an agent of its choice.

The DOJ believed US$4.5 billion was misappropriated from 1MDB and laundered through the global financial system, including the US.

To date, it has initiated forfeiture action on around US$1.7 billion in assets, believed to have been acquired using illegal funds.

Former prime minister Najib Abdul Razak is facing trial for the 1MDB scandal in Malaysia while Low, who has been charged in absentia in both the US and Malaysia, is presently on the run.

Both have denied wrongdoings. - Mkini