The prosecutors alleged that Mahony and Obaid helped to set up a joint venture with 1MDB by creating the impression that their company, PetroSaudi, was backed by the Saudi government.
On Aug 28, 2024, the Swiss Federal Criminal Court convicted Swiss-British national Patrick Mahony and Swiss-Saudi Tarek Obaid for embezzling more than US$1.8 billion from 1Malaysia Development Bhd (1MDB). What they did together with Jho Low between 2009 and 2011 was the original crime in what was eventually the theft of at least US$4.5 billion of 1MDB money paid for by Malaysian taxpayers.
Obaid was sentenced to seven years and Mahony six. Out on appeal, they were ordered to pay back more than US$1.75 billion to 1MDB but there is little likelihood all of it, if any, can be recovered. Whistle-blower Xavier Justo says Obaid has US$300 million frozen in a bank account in London, which is still a lot of money if Malaysia can get that back.
