THE Kuala Lumpur High Court has ruled that two associates of fugitive financier Low Taek Jho, or better known as Jho Low, must repay almost US$2.8 billion to 1Malaysia Development Berhad after finding them liable for participating in, and benefiting from, a vast offshore diversion of public funds.
The judgment, delivered in their absence, marks one of the largest financial orders to date linked to the 1MDB scandal.
Justice Mahazan Mat Taib granted default judgment against Tan Kim Loong, also known as Eric Tan, and Low May Lin after both failed to enter an appearance or file any defence.
The court ordered Tan to pay US$2.795 billion, while May Lin, Jho Low’s sister, was directed to return US$809,319.
In issuing his decision, Justice Mahazan said 1MDB and its four subsidiaries had fully substantiated their case.
“The evidence, consisting of corporate documents, fund-flow charts, bank records and witness testimony, remains entirely unchallenged,” he said, noting that the material presented pointed to a deliberate and multi-layered siphoning of funds by individuals wielding influence and supported by trusted intermediaries.
The court found that Tan was the beneficial owner of the Alsen Chance and Blackstone accounts, which together received US$2.795 billion diverted from 1MDB across several years.
May Lin, the judge said, became a personal beneficiary through four transfers from her father, Low Hock Peng.
“These transfers were gratuitous, lacked commercial rationale, and originated from funds misappropriated via the Good Star structure.
“As Jho Low’s sister, her role as a personal beneficiary of siphoned funds fits squarely within the wider pattern of family-based concealment,” he added.
Justice Mahazan detailed how the misappropriation occurred across four phases: the Good Star phase in 2011, Aabar in 2012, Tanore in 2013, and the Options Buyback in 2014.
Funds purportedly raised for national development were instead redirected into offshore entities controlled by Jho Low and those acting alongside him.
Testimony from former 1MDB chief executive Shahrol Azral Ibrahim Halmi was accepted without contest.
He told the court that then prime minister and finance minister Najib Razak exercised “de facto” control over 1MDB’s major financial decisions.
Although Jho Low held no official position, Shahrol described him as Najib’s “authorised proxy and shadow director.”
Additional evidence from asset recovery specialist Angela Barkhouse and UK financial-fraud investigator Richard Templeman reinforced the plaintiffs’ account of how the multi-billion-dollar diversion was executed and concealed.
With both defendants absent from proceedings despite being properly served with court papers, the judge granted judgment in favour of 1MDB and awarded RM500,000 in costs.
Meanwhile, in a statement, the 1MDB Asset Recovery Board welcomed the court’s decision in the matter.
“This outcome is a further step forward in reaching justice for the people of Malaysia, and marks continued progress in our global effort to recover assets misappropriated through the 1MDB scandal. “We will take all measures to recover these funds from the plaintiffs.
“The ruling sends a clear message that those who benefitted from the orchestrated theft of Malaysia’s sovereign funds will not evade accountability."
The Board remains steadfast in its commitment to ensuring that all individuals who unlawfully enriched themselves with 1MDB assets are held to account.
"We will continue to pursue every legal avenue, domestically and internationally, to secure full restitution for the Malaysian people." - November 25, 2025
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