DB, J.P Morgan, Coutts face a multi-billion trial in MalaysiaEuropost
Large-scale corruption probe in Malaysia dragged Deutsche Bank, J.P Morgan and Coutts in court to face charges totaling billions of dollars, Reuters reported. The collapsed state fund 1MDB is suing the Malaysian unit of DB for $1.11 billion, and the Swiss units of J.P. Morgan and Coutts for $800m and 1.03bn. The claims are for alleged losses from a corruption scandal at the fund, court documents showed.
Malaysia's finance ministry said 1MDB had filed 22 civil suits seeking to recover more than $23 billion in assets from entities and people allegedly involved in defrauding the fund and its ex-subsidiary. It did not identify any of the individuals or entities being sued. A Deutsche Bank spokesperson said: "We have not been served any papers, and we are not aware of any basis for a legitimate claim against Deutsche Bank." Malaysian and US investigators say at least $4.5 billion was stolen from 1MDB between 2009 and 2014, in a wide-ranging scandal that has implicated high-level officials, banks and financial institutions around the world. Malaysian authorities have previously said there were billions of dollars more that were unaccounted for.
The lawsuits come after Malaysia recovered nearly $5 billion in assets following deals over the past three years with US bank Goldman Sachs, which helped 1MDB raise billions of dollars in funds, audit firm Deloitte and others.