The Swiss Federal Criminal Court has convicted two executives, Patrick Mahony and Tarek Obaid, of embezzling over $1.8 billion from Malaysia's state investment fund, 1MDB.
The verdict is the latest development in the 1MDB scandal, a complex tale of international corruption that has implicated numerous financial institutions and individuals worldwide.
Prosecutors alleged that Mahony and Obaid created a fraudulent scheme with fugitive Malaysian financier Jho Low, an adviser to former Malaysian Prime Minister Najib Razak, to defraud 1MDB.
The two executives were sentenced to seven and six years in prison, respectively, for their roles in the scandal.
The 1MDB board welcomed the convictions, stating, "We welcome today's verdict...which means that Patrick Mahony and Tarek Obaid will face justice for their role in embezzling and defrauding the people of Malaysia."
The scandal has implicated figures ranging from Razak to Goldman Sachs staff and high-level officials, with estimated losses totaling $4.5 billion.
The US Department of Justice has helped recover approximately $1.4 billion in 1MDB funds for Malaysia, with the latest recovery of $156 million announced in June.
