Corporate services provider Amicorp Group has said it will “defend itself vigorously” against a legal claim exceeding $1bn by former sovereign wealth fund 1Malaysia Development Berhad (1MDB).

In a statement issued on 23 December, the Hong Kong-based company said any claims for damages were unfounded and that it has always conducted its business operations reputably.

The claim was initiated on 23 December in the commercial division of the British Virgin Islands (BVI) High Court by the former fund and its subsidiaries against Amicorp Group and its chief executive officer, Toine Knipping. Joint liquidators Kroll brought a further suit on the same facts on 20 December.

Amicorp is accused of playing a pivotal role in enabling the diversion of funds from 1MDB between 2009 and 2014. 

Brought by law firm Baker & Partners in the BVI, with the assistance of counsel from London chambers South Square and 7 King’s Bench Walk, the claim alleges Amicorp established and managed a network of shell companies and engaged in sham transactions to obscure the origin and destination of misappropriated funds.

In its statement, Amicorp said the misappropriated funds were illicitly obtained by or for the benefit of senior Malaysian government officials and UAE-based investment fund officials. 

It noted that regulatory and litigation settlements had been agreed with an array of international banks in Singapore, Hong Kong, Switzerland, Malaysia and the US, where the Department of Justice had brought 41 civil forfeiture actions, the largest recovery under its Kleptocracy Asset Recovery Initiative, leading to the repatriation of more than $1.4bn of funds to Malaysia.

It added that it had not previously been the subject of any investigations or lawsuits in any jurisdiction relating to 1MDB and had cooperated fully with governmental agencies and prosecutors in Singapore, Switzerland and Malaysia.

Malaysian and US investigators have previously estimated that the 1MDB scandal, one of the most significant financial frauds in recent history, involved the embezzlement of approximately $4.5bn from the Malaysian sovereign wealth fund, according to Reuters.

The scandal led to the conviction of former Malaysian Prime Minister Najib Razak, who was jailed for corruption in 2022 but had his 12-year sentence halved by Malaysia’s pardons board in February. Najib denies wrongdoing.