Shearman & Sterling has unwittingly become caught up in the biggest ever asset seizure by the US Department of Justice’s anti-corruption unit.
According to civil filings to the United States District Court in Los Angeles, the law firm held millions of dollars in stolen funds in an account in the US; the money was allegedly used to finance the lavish lifestyles of several businessmen associated with the 1Malaysia Development Berhad (1MDB) sovereign wealth fund.
US federal prosecutors have filed a series of civil complaints to seize $1 billion in assets bought with money from the fund, including commercial properties and a private jet.
The New York-headquartered firm is not alleged to have committed any wrongdoing or to have had knowledge about how the funds were being misused.
Source: The Lawyer