Executives Convicted in $1.8 Billion 1MDB Scandal

The Swiss Federal Criminal Court convicted two executives from an oil exploration company for embezzling over $1.8 billion from Malaysia’s state fund 1MDB. Patrick Mahony and Tarek Obaid misled 1MDB into a joint venture by falsely claiming PetroSaudi had Saudi government backing. They then defrauded the fund.

The Swiss Federal Criminal Court on Wednesday convicted two executives from an oil exploration company for embezzling over $1.8 billion from Malaysia's state investment fund 1MDB. This marks the latest chapter in the ongoing 1MDB scandal, which has implicated numerous financial institutions and individuals worldwide since allegations emerged in 2015.

Prosecutors accused Swiss-British national Patrick Mahony and Swiss-Saudi Tarek Obaid of creating a false impression that their company, PetroSaudi, was backed by the Saudi government. This deception helped them secure a joint venture with 1MDB in 2009.

The court found that the accused successfully misled 1MDB's board and ultimately defrauded the state fund, adding to the complex narrative of corruption surrounding 1MDB.

(With inputs from agencies.)