Justice Mahazan Mat Taib ruled in favour of 1MDB, directing Tan, also known as Eric, to pay US$2.795 billion and May Lin to pay US$809,319.
The judge said evidence presented by 1MDB and its four subsidiaries pointed to an elaborate, multi-layered siphoning of funds carried out by individuals in positions of authority and supported by offshore structures and trusted associates, including the two defendants.
The evidence, consisting of corporate records, fund flow charts, bank documents and witness testimonies, went unchallenged.
Mahazan said the plaintiffs had shown that the misappropriation involved four phases, namely “Good Star” (in 2011), “Aabar” (in 2012), “Tanore” (in 2013), and “Options Buyback” (in 2014).
She held that in each phase, money raised for national projects was rapidly diverted into offshore entities controlled by Taek Jho, also known as Jho Low, and his associates.
She said the evidence demonstrated that Tan, a close associate of Jho Low, was the beneficial owner of the Alsen Chance and Blackstone accounts that received US$2.795 billion wrongly diverted from 1MDB.
The court also found that May Lin, Jho Low’s sister, received US$809,319 in her personal account through four transfers from their father, Low Hock Peng.
“These transfers were gratuitous, lacked commercial rationale, and originated from funds misappropriated via the Good Star structure.
“As Jho Low’s sister, her role as a personal beneficiary of siphoned funds fits squarely within the wider pattern of family-based concealment,” she said.
The court also held testimony from former 1MDB CEO Shahrol Azral Ibrahim Halmi established that then prime minister and finance minister Najib Razak had exercised de facto control over 1MDB’s financial decisions.
Although Jho Low held no official role, he acted as Najib’s authorised proxy and shadow director.
Shahrol, asset recovery specialist Angela Barkhouse and financial fraud investigator Richard Templeman testified during the unopposed hearing on Oct 6.
Tan and May Lin failed to enter an appearance, file pleadings or attend the trial despite being served with cause papers.
Lawyers K Siva Kumar and Lee Shih represented 1MDB.
The court also awarded 1MDB RM500,000 in costs.