KUALA LUMPUR, Oct 17 — Fugitive financier Low Taek Jho and his father Tan Sri Larry Low Hock Peng have reportedly been sentenced to prison by the High Court today for failure to abide by a Mareva injunction granted to 1Malaysia Development Bhd (1MDB) and its subsidiary Global Diversified Investment Company Ltd.
The warrant of committal was issued by High Court judge Hayatul Akmal Abdul Aziz following an application made by 1MDB's legal counsel from Messrs. Skrine, financial news outlet The Edge reported.
A Mareva injunction is a temporary order which restrains the defendant from disposing of assets until the determination of the case between the plaintiff and the defendant.
Following this, both Low and Hock Peng can be sentenced to prison until they purge the contempt imposed on them.
On August 12, Hayatul granted 1MDB and Global Diversified Investment Company (formerly known as 1MDB Global Investments Limited) leave to initiate contempt against the duo.
1MDB and Global Diversified Investment Company obtained the ex-parte Mareva injunction on March 16, and this was affirmed on April 20, where the companies applied to freeze US$1.03 billion of Jho Low’s assets and another US$401.5 million of Hock Peng’s assets, which are said to be related to 1MDB.
The injunction also limits Jho Low and his father from spending no more than RM20,000 a month each for living and legal expenses.
If they need more than the amount, they need to get prior written permission from 1MDB and Global Diversified’s lawyers.
The order also states that Jho Low and his father must make written disclosures to 1MDB and Global Diversified regarding their assets, valued at US$1.03 billion and US$401.5 million, respectively, whether locally or abroad, under their own name or otherwise, and whether under sole or joint possession.
Jho Low and Hock Peng were supposed to disclose to 1MDB and Global Diversified Investment Company where the duo and their assets were located within 14 days of the March 16 order. They had not done so.
Following this, 1MDB and the subsidiary followed up with the contempt proceeding.
Both Low and Hock Peng are not in Malaysia, with Low allegedly operating and running a business consulting firm in Shanghai.
