US officials have recovered a Pablo Picasso (1881-1973) drawing worth $1.2 million (£930,000) that was purchased with allegedly embezzled funds at Christie’s New York a decade ago. The deal was struck with an ex-member of 1Malaysia Development Berhad (1MDB), the scandalised sovereign investment fund accused of widespread corruption and bribery.

Trois femmes nues et buste d’homme (1969), a “voyeuristic” pencil sketch by the famous Spanish artist, was acquired by the former general counsel for 1MDB Jasmine Loo Ai Swan from Christie’s in 2014. However, Loo reputedly used misappropriated 1MDB funds from a bond sale underwritten by Goldman Sachs to make the purchase.

1MDB fund was created by the Malaysian government in 2009 to promote economic development in the country through foreign investment. From 2009 through 2015, more than $4.5 billion (£3.5 billion) in funds were stolen “through a criminal conspiracy involving international money laundering and bribery,” according to the US Justice Department. Malaysian financier and art collector Low Taek Jho, known as Jho Low, is now an international fugitive who alleged masterminded the conspiracy that involved other high-ranking figures like Malaysia’s then-Prime Minister Najib Razak.

US Federal prosecutors have already brought numerous civil forfeiture cases against 1MDB, so far assisting in the return of more than $1.4 billion (£1.1 billion) in illicitly obtained assets. Forfeiture orders have also been obtained for artworks by Vincent Van Gogh (1853-1890), Claude Monet (1840-1926), Diane Arbus (1923-1971), and Andy Warhol (1928-1987). In 2016, the actor and collector Leonardo DiCaprio handed over to the FBI a collage by Jean-Michel Basquiat (1960-1988) and another Picasso painting collectively worth $12.2 million (£9.4 million), which had been given to DiCaprio as gifts by individuals involved in the investigation.

After years on the run, Loo forfeited the prized Picasso drawing to US authorities in May 2024, as well as a financial account in Switzerland that had been traced to funds reportedly embezzled from 1MDB. There remain several criminal claims against Loo for her part in the money-laundering scheme. The total asset value the US Justice Department is seeking is estimated to be nearly $85 million (£66 million), including “flawless” diamond jewellery designed by Lorraine Schwartz that Low bought for his mother.