The international fight over the seizure of the superyacht Equanimity is heating up. The U.S. Department of Justice (DOJ) has requested court approval to transfer her to American shores and sell her. The owner, meanwhile, filed lawsuits this week in Indonesia, where the yacht currently sits, and the United States, declaring the seizure “unlawful conduct.”
Indonesian authorities seized Equanimity in Bali in late February on behalf of the DOJ. An official from Indonesia’s criminal investigation bureau stated that it had proof the 300-footer (91-meter) was acquired with criminally obtained funds. Those funds allegedly are from 1MDB, a Malaysian state fund. Low Taek Jho, a.k.a. Jho Low, a Malaysian financier, is accused of stealing more than $400 million from the fund. The DOJ claims Low used some of the money to buy Equanimity. Both the managers of 1MDB and Low deny misconduct.
The war of words escalated this week. On March 26, the DOJ filed a request in a California court to become the yacht’s custodian. This would permit it to bring her to the United States to sell, under civil forfeiture. The DOJ estimates her value at $250 million. The DOJ further accused Low of instructing his captain to turn off Equanimity’s AIS signal in recent months. It added that he kept her “in a series of foreign locations and frustrated the government’s efforts to bring this asset to the United States.” On March 28, lawyers for Equanimity (Cayman) Limited, the trust behind the yacht, disputed this.
In addition, on March 26, Equanimity’s lawyers filed an emergency-order request to keep her in Bali. “The government does not know how to properly maintain or market a luxury yacht as unique and distinctive as the M/Y Equanimity,” it reads. As proof, it claims the DOJ wants to reduce crew head count to eight. This, the trust says, would endanger the crew and the yacht’s condition. Furthermore, the trust says the stateside luxury-yacht market is “anemic.” By contrast, the DOJ points to a study of the global superyacht market, revealing a 45-percent marketshare in North America.
Just yesterday, Equanimity (Cayman) Limited issued another statement. It explained it has filed legal challenges in California and Indonesian courts to the DOJ’s seizure. Each country’s authorities “acted outside the bounds of legal rules in their respective nations,” it reads. It adds that since the DOJ suspended its case against the yacht last year, the seizure was unlawful. Furthermore, the company says, the move was “needlessly costly and ill-conceived,” since the trust indicated it would cooperate with the DOJ and U.S. court if proof of wrongdoing existed.
Richard Ballard
Please forward this comment to Diane M. Byrne. DIANE–I am a retired U.S. Army Colonel. I would l have reviewed some of your articles regarding Russian oligarchy act seizures. I have an update on a Russian yacht, presently being guarded by Wagner Group personnel, which is moored in Bahamas. This is a “smaller” yacht, I am thinking @$50M or so, the recently rebirth Lady Mary. I have photos and an interesting story to relate. Please tell me if you are interested in this story, or please recommend someone who might be.