KUALA LUMPUR (Nov 4): A whopping US$10 million (RM43.7 million) was used by fugitive businessman Low Taek Jho (Jho Low) and his associate Erin Tan Kim Loon to gamble in Las Vegas, purchase a painting from renowned artist Jean-Michel Basquiat as well as on aviation services.

UK-based financial fraud investigator Richard Templeman, who was testifying at the 1MDB US$248 million civil trial against Datuk Seri Najib Razak's stepson Riza Aziz and Riza’s company Red Granite Capital Ltd, said that US$13 million was used from monies which originated from 1Malaysia Development Berhad (1MDB) was spent gambling at Las Vegas Sands LLC, a famous American casino.

The witness was testifying for the plaintiffs — 1MDB and its three subsidiaries, 1MDB Energy Holdings Ltd, 1MDB Energy Ltd and 1MDB Energy (Langat) Ltd.

Templeman had mapped out the money trail for the US$248 million, which originated from 1MDB and ended up in Red Granite’s account in June 2012. From Red Granite’s account, a sum of US$41 million was transferred to Alsen Chance Holdings, a shell company incorporated in the British Virgin Islands. The shell company was owned by Tan and Jho Low and used to launder 1MDB funds.

"Of this amount, US$13 million was transferred to Las Vegas Sands LLC, with US$11 million designated for ‘player 3454296’ and US$2 million for Tan Kim Loong, identified as player number 4678710.

"Research indicates that Las Vegas Sands LLC is a casino and resort company," Templeman said when testifying in the lawsuit via Zoom on Monday.

On July 23, 2012, a total of US$7,350,500 and US$1,300,000 were credited back to the Alsen Chance account from Las Vegas Sands LLC.

He said these payments were marked “funds due from Low Taek Jho” and “funds due from Tan Kim Loong”.

"It seems likely these funds were the balance of those paid out to Las Vegas Sands LLC on July 10 and 11, 2012, and therefore represent the funds transferred from Red Granite Capital to Alsen Chance," he said.

A further US$3.3 million was transferred from Alsen Chance to Callamari Fine Art on July 27, 2012. Templeman said that the reference for this payment was named “Jean-Michel Basquiat”, purportedly for a painting from the artist.

A further US$2.78 million was paid to Royal Jets between July 9, 2012, and July 23, 2012. These payments were marked for “Private Aviation Services” according to Templeman.

He further testified that on July 30, 2012, and Aug 1, 2012, two payments of U$5,000,000 were made to a Bank of America International account in the name of one Zakry B Shazryl in Oklahoma, United States.

“I do not currently have any further information as to why these payments were made,” he said.

In this case, 1MDB is seeking Riza and the two Red Granite companies to pay it back US$248 million.

1MDB, along with 1MDB Energy Ltd, 1MDB Energy Holdings Ltd and 1MDB Energy (Langat) Ltd, filed the suit in May 2021.

They said the first tranche of payment of more than US$10.173 million made to Riza was from Good Star Ltd, a company controlled by Jho Low, and that the US$238 million that Red Granite Capital received was actually from bonds raised by 1MDB for the purchase of several power plants.

The trial is before Judicial Commissioner Raja Datuk Ahmad Mohzanuddin Shah Raja Mohzan.