* Malaysia working with U.S., others to return stolen funds
* U.S. justice dept says billions of dollars missing from 1MDB
* Money recovered used to buy New York hotel, fund movie
* Goldman Sachs, Malaysian ex-PM face criminal charges
By Joe Brock
SINGAPORE, May 3 (Reuters) - U.S. authorities will this month return $200 million stolen from Malaysia’s state fund 1MDB, including money from a stake in a luxury New York hotel and from a Hollywood movie producer, two sources with direct knowledge of the matter said.
The U.S. Department of Justice, in the biggest ever case in its anti-kleptocracy programme, is pursuing billions of dollars it says were misappropriated from 1MDB, a state fund founded by former Malaysian prime minister Najib Razak.
Prime Minister Mahathir Mohamad, who defeated Najib in a shock election result last year, is working with at least six countries to recover about $4.5 billion it says was stolen from 1MDB.
The tranche of money being returned by the U.S. includes $140 million from the sale of a stake in New York’s Park Lane Hotel, after it was given up by fugitive financier Low Taek Jho, known as Jho Low, the two sources said.
Jho Low, the alleged mastermind behind the looting of 1MDB, is wanted by the Malaysian authorities to face criminal charges. Low, whose whereabouts are unknown, has denied wrongdoing.
The sources said the remaining money is the $60 million from Red Granite Pictures, co-founded by Najib’s stepson Riza Aziz, which agreed in March 2018 to pay the U.S. government to settle a civil lawsuit over allegations 1MDB money was used to finance the film “Wolf of Wall Street”.
The U.S. Department of Justice did not immediately respond to a Reuters’ request for comment.
Separately, Singapore police said on Friday that $26 million in 1MDB-related funds was in the process of being returned to Malaysia, the latest tranche in $176 million in cash and properties seized by the city-state relating to the scandal.
Malaysia recouped a further $126 million last month by selling the superyacht Equanimity, which was bought by Jho Low for $250 million with funds allegedly stolen from 1MDB.
Malaysia has also filed criminal charges against Goldman Sachs for its role in raising money for 1MDB.
The investment bank says it conducted correct due diligence.
Prosecutors in the U.S. Attorney’s Office in Brooklyn have said a former Goldman Sachs employee has pleaded guilty to conspiracy to launder money. (Reporting by Joe Brock; additional reporting by Aradhana Aravindan and Fathin Ungku in Singapore and Joseph Sipalan in Kuala Lumpur; editing by Darren Schuettler)