Denying the owner’s legal challenge, an American judge says Equanimity can come stateside from Bali. She’ll do so under the control of the U.S. Department of Justice, following its seizure of her in February. It’s the latest development in a multi-country court battle, stemming from allegations of stolen government funds.
The 300-foot (91-meter) Equanimity belongs to Malaysian financier Low Taek Jho, a.k.a. Jho Low. On March 26, lawyers for Low petitioned a California court to let Equanimity remain in Bali while they fight the yacht’s arrest. Also on March 26, the Department of Justice filed a request to become the yacht’s custodian. Later that week, Equanimity (Cayman) Limited, the trust behind the yacht, claimed the Equanimity seizure was illegal.
On April 3, a U.S. District Court judge in California disagreed. According to Bloomberg News, she did, however, express concern over proper manning. In their March 26 request, Equanimity’s lawyers asserted that the Department of Justice would reduce the crew from 20 to eight. The judge instructed U.S. officials to consult the captain or another senior crewmember about necessary head count.
These latest developments come about five weeks after Indonesian authorities seized Equanimity, in waters off Bali. Officials were cooperating with the FBI. The FBI and Indonesian investigators allege that Low stole millions from 1MDB, a government-run development fund. They further allege that Low used some of the money to buy Equanimity. He denies the claims. Regardless, Agung Setya, a member of Indonesia’s criminal investigation bureau, told a TV reporter following the arrest, “We have legal confirmation that this asset is the result of a crime.” He added, “Our law stipulates that anyone who hides an asset resulting from the proceeds of a crime is committing a money-laundering crime.”
The overall FBI case against Lhow dates back to 2015. The bureau has since obtained several assets, such as jewelry, that Lhow owned or gave as gifts. Equanimity became the big focus last June. Indeed, the Department of Justice filed a civil case seeing to recover the yacht, as well as other allegedly stolen assets. Soon after, a U.S. District Court judge in California issued an arrest warrant for the megayacht.
Following the arrest in Bali, Lhow issued additional denials of wrongdoing. He also called the Justice Department’s allegations “deeply flawed and politically motivated.”
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