1MDB Scandal: Millions Routed into Kim Kardashian, Pharrell Williams Bank Accounts

Stolen Funds Diverted to Celebrity Accounts

The Malaysian High Court was notified last week that a whopping $2.4 million in misappropriated funds was channeled from the controversy-ridden 1Malaysia Development Bhd (1MDB) sovereign wealth fund into the bank accounts of celebrity Kim Kardashian and musician Pharrell Williams. The funds were funneled through Jho Low's shell company, Good Star Ltd, according to the court report.

Details of the Investigation

Richard Templeman, a financial fraud investigator, revealed this information during his testimony in the US$6.59 billion lawsuit filed by 1MDB against former Treasury Secretary-General Tan Sri Mohd Irwan Serigar Abdullah and former 1MDB CEO Arul Kanda Kandasamy. Templeman informed the High Court that the investigation discovered that by October 25, 2011, 1MDB had transferred US$1.03 billion to Good Star for Low's benefit.

Templeman detailed in his witness statement that these funds were transferred through a series of offshore companies and used for the personal benefit of the co-conspirators and their relatives and associates.

Transactions to Talamasca Inc. and Kim Kardashian

Templeman further explained that from the billions flowing through Good Star, $2,025,000 was moved to a Suntrust Bank account under the name of Talamasca Inc. Transactions between August 11 and November 17, 2011, were noted as "part payment for music production" and "Letter of Agreement DD 3 NOV 2011 Red Spring Investments And Talamasca/Pharrell Williams."

Templeman stated that publicly available information links Talamasca Inc. with musician Pharrell Williams, although he had no further information regarding this transfer of funds.

Templeman also revealed that additional sums were paid from Good Star to various entities, including US$306,000 to reality TV star Kim Kardashian and another US$100,000 to Kardashian and her then-husband Kris Humphries. The purpose of these transactions remains "currently unknown," according to Templeman.

1MDB Lawsuit Against Mohd Irwan and Arul Kanda

Templeman, who is a director of investigations at Kroll Advisory, is supervising the ongoing investigation into misappropriated funds from 1MDB and SRC International Sdn Bhd, which were channeled through liquidated companies.

In May 2021, 1MDB initiated a lawsuit against Mohd Irwan and Arul Kanda for breach of trust and conspiracy, leading to a reported $1.83 billion in losses related to an investment in 1MDB-Petrosaudi Ltd, later converted into the Brazen Sky Limited investment, which 1MDB claims is recoverable from the Bridge Global Fund.

The lawsuit also alleges that the defendants misappropriated $3.5 billion in funds paid to Aabar Investments and US$1.265 billion paid to International Petroleum Investment Company on May 9, 2017.

Furthermore, 1MDB accuses Mohd Irwan of colluding with Arul Kanda to extend an employment agreement, resulting in a RM2,905,200 payment to Arul Kanda and additional losses to the company.

As a result, 1MDB is seeking $6.59 billion in damages from both defendants and an additional RM2.9 million from Mohd Irwan related to the employment agreement extension.

The hearing will resume this afternoon before Judicial Commissioner Raja Ahmad Mohzanuddin Shah Raja Mohzan.

Bottom Line

The 1MDB scandal continues to unravel, revealing a complex web of financial transactions involving high-profile celebrities. As the investigation continues, it raises questions about the extent of the misappropriation of funds and the involvement of various entities. What are your thoughts on this development? Do you think it will have a significant impact on the celebrities involved? Share your thoughts and this article with your friends.

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