Malaysia has filed a complaint with the United States Justice Department against a company it says is responsible for a scheme in which it was allegedly able to defraud US investors out of more than $4.5 billion.
The Justice Department filed the complaint on Wednesday against the company, Litigation and Litigation Group Inc., according to a statement from the office of Assistant Attorney General John Carlin.
“The Litigation & Ligation Group allegedly used false and misleading statements to attract and acquire US investors,” Carlin said in the statement.
“The Litigants’ fraudulent activities resulted in millions of dollars in losses and millions of American dollars in lost investments.”
According to the statement, Litigant Group is “the principal defendant in this lawsuit.”
Litigation & Litigation is not the name of the company but the company’s registered agent, the statement said.
Litigant, founded in 2000, has been the subject of several investigations by the US Securities and Exchange Commission, the New York attorney general’s office, and the Department of Justice.
In February, the DOJ issued a notice to its members stating that the company may be a fraudster and may have violated securities laws, according to the Wall Street Journal.
The DOJ filed its notice in a Delaware court.
In its complaint, Malaysia’s complaint says Litigation, LLC was responsible for creating an account at a US bank that allowed for its investors to invest money in Litigation’s securities business.
The company also allegedly created an account for its foreign clients to invest in the securities business, the complaint says.
In 2016, the US Justice Department began investigating the company after complaints by two investors.
In an emailed statement, US Attorney General Loretta Lynch said that the Justice Department would work with the Justice Departments Office of Inspector General to examine the allegations and provide a report to Congress. “
Litigating’s fraud, in which its foreign investors were allegedly deceived into investing in the business by misrepresentations by Litigation to US investors, is particularly egregious because it involved deception by its foreign agents to lure foreign investors to the company,” according to an announcement.
In an emailed statement, US Attorney General Loretta Lynch said that the Justice Department would work with the Justice Departments Office of Inspector General to examine the allegations and provide a report to Congress.
“This is a very serious matter and we are going to work with our partners at the Department to get to the bottom of this,” Lynch said.
In March, US regulators filed a lawsuit against Litigation for allegedly misleading investors, as well as others, in its investment in the US stock market.