Federal Judge Rejects Swizz Beatz’s Dismissal Request in 1MDB Scandal Case
Federal Judge Rules on Swizz Beatz’s Involvement in 1MDB Bankruptcy Case
Music Producer Swizz Beatz Remains Defendant in 1MDB Scandal Case
A United States federal judge has ruled that Kasseem Dean, popularly known as “Swizz Beatz,” will continue to be a defendant in a bankruptcy case connected to the infamous 1MDB scandal. This decision moves the case to the discovery stage of legal proceedings.
Background and Legal Arguments
In February, Dean filed a motion seeking to have himself and two of his companies, Monza Studios and Swizz Beatz Productions, dismissed as defendants in the case. The case was initially filed against Dean and his companies in October 2024 in the US District Court for the Southern District of New York.
The defense argued that the plaintiffs lacked standing and had exceeded the statute of limitations. They also claimed that the plaintiffs failed to present adequate facts to support their claims. Dean’s motion concluded that the lawsuit was a strategy to pressure the collection of non-recoverable assets under the guise of retrieving assets for creditors.
Judge’s Ruling and Plaintiff’s Response
On September 26, Judge Naomi Reice Buchwald denied Dean’s motion, asserting that the plaintiffs have standing, the claims are timely, and the court has jurisdiction. The judge noted that the plaintiffs provided specific facts suggesting fraudulent intent.
The plaintiffs, Angela Barkhouse and Toni Shukla, are liquidators for four companies referred to as “Insolvent Entities.” They allege two fraudulent conveyances and one instance of unjust enrichment. Attorney Casey D. Laffey expressed satisfaction with the ruling and emphasized the importance of returning funds to Malaysia’s sovereign wealth fund for rightful redistribution to the Malaysian citizens.
Connections to Notorious 1MDB Fraud
The judge’s ruling outlined Dean’s alleged connections to Low Taek Jho, also known as Jho Low, who is accused of orchestrating a $7.65 billion fraud involving the 1 Malaysia Development Berhad (1MDB) sovereign wealth fund. The case focuses on recovering $7.3 million that Dean and his companies allegedly received through fraudulent transactions.
While Dean is not accused of directly participating in the 1MDB fraud, it is alleged that he and his companies received funds through shell companies at the direction of Jho Low or his associates. Transactions detailed in the ruling suggest Dean received $2.2 million, Monza Studios $1.8 million, and Swizz Beatz Productions $1.5 million from these funds.
Asset Recovery and Auction Details
Among the assets involved, Dean previously owned Andy Warhol’s “Round Jackie” artwork, which was allegedly gifted by Low in 2014 and later surrendered to authorities in 2020. In 2024, the US Department of Justice recovered several artworks connected to the 1MDB scandal, including pieces by Warhol, Monet, and Picasso.
In early October, the US Marshals Service auctioned art pieces, including works by Picasso and Basquiat, related to the 1MDB fraud, generating $36 million.
