The US Department of Justice (DoJ) is investigating political donations by rap star Pras Michel to the 2012 Obama re-election campaign after evidence emerged that he received US$20 million in gifts from Malaysian financier Jho Low, who is linked to the 1Malaysia Development Berhad (1MDB) fraud scandal.
- Documents allegedly show Jho Low gave US$20m to Pras Michel as a gift
- Michel donated over US$1.3m to Obama’s re-election campaign
- WSJ said at that time Low as trying to boost Malaysia’s and Najib’s profie in the US
- Donating funds to a presidential candidate on behalf of another is a violation of US federal laws and punishable by fines and/or jail time
- A company that Michel co-founded also has ties to 1MDB, with dealings including earning support for Malaysia in the US
The Wall Street Journal (WSJ) reported that people connected to the investigation wanted to know if an agreement existed between Michel, a former member of The Fugees group, and Low to get President Barack Obama re-elected. Donating funds to a candidate on behalf of another person or company is a violation of federal campaign finance laws and may be punishable by fines and/or jail time. The investigation is ongoing.
Kit Pearson, lawyer for Michel, told the WSJ a “false narrative” about his client was being spread, telling reporters that to draw any conclusions of collusion from the information would be “fundamentally mistaken.” He declined to comment on Michel’s relationship with Low or the money received.
A spokeswoman for Obama likewise refused to comment.
Documents seen by WSJ show that Low paid US$20 million in 2012 to two limited-liability companies controlled by Michel. The payments were cited as a “gift the Pras.”
The same year, Michel donated over US$1.3 million to the re-election campaign of then-President Barack Obama. Around that time, Low was trying to boost both Malaysia’s and Najib’s profile in the US in the hopes of securing investment times, the WSJ reports.
A company that Michel co-founded with partner Frank White Jr, DuSable Capital Management LLC, also has ties to the development fund. In 2015, 1MDB bought DuSable’s stakes in a solar-power project in Malaysia for US$69 million. It remains DuSable’s biggest deal to date, but the project was never completed.
A spokesman for DuSable co-founder White and DuSable previously denied wrongdoing and said the dealings with 1MDB were “intended to provide renewable energy in Malaysia, create jobs in the United States and earn support for Malaysia in the United States.”
Jho Low has been implicated by the DoJ in the alleged misappropriation of funds linked to 1MDB.
Prosecutors in Singapore have also named him as the central figure in probes linked to 1MDB, adding that he used money traceable to the state fund for his own benefit.
In court filings, the prosecutors said Low had received “huge” sums of money.
According to the filings, some US$1 billion that 1MDB purportedly invested in a joint venture with PetroSaudi International Ltd was diverted to a bank account beneficially owned by Low, who has reportedly disappeared from the public eye. He has denied any wrongdoing.
Related reports:
Oct 23, Request to Locate Jho Low Forwarded to Interpol
Aug 11, US Now Moves Criminal Investigation into 1MDB Funds
Jul 12, Spore Banker Guilty in 1MDB-Linked Case, Jailed 54 Months
Jul 13, Jho Low Reacts to Singapore’s Allegations
Jul 1, How the 1MDB Loot Was Spent, as Alleged by the DoJ
June 22, Ghost of One Year Past Revisits 1MDB Controversy