Swizz Beatz will remain a defendant in a $7.3 million lawsuit tied to fugitive financier Jho Low and the 1MDB corruption scandal, following a federal judge’s ruling in New York on September 26.
U.S. District Judge Naomi Reice Buchwald rejected the Grammy-winning producer’s attempt to dismiss the case, which accuses him of receiving millions in questionable wire transfers from offshore companies allegedly controlled by Low. The lawsuit claims Swizz Beatz, whose legal name is Kasseem Dean, accepted the funds between 2012 and 2014 without providing any services in return.
Lawsuit Alleges Dean Accepted Funds With No Legitimate Purpose
The complaint, filed by court-appointed liquidators Angela Barkhouse and Toni Shukla, alleges Dean was paid through a network of shell companies connected to Low, who is accused of embezzling billions from Malaysia’s 1MDB and SRC International sovereign wealth funds.
“None of the transfers were made for any consideration and, as of the filing of the Amended Complaint, none of the funds have been returned,” Judge Buchwald wrote in her ruling.
The liquidators are seeking to recover the funds on behalf of creditors and investors impacted by the fraud.
Judge Cites “Adverse Domination” to Keep Case Alive
Dean’s legal team argued that the lawsuit was filed too late and should be dismissed on procedural grounds. But Judge Buchwald ruled that the statute of limitations had not expired due to “adverse domination”—a legal concept that delays deadlines when the wrongdoers are still in control of the companies harmed.
“Until the issues of domination and control, which are fact-based, are more fully litigated, the statute of limitations must be deemed not to have expired and must be tolled during the wrongdoers’ period of control,” she wrote.
Liquidators Have Standing to Sue, Judge Rules
Dean also argued that the companies involved were too entangled in the fraud to bring claims. Judge Buchwald disagreed, stating that once the companies were no longer under Low’s influence, they had the right to recover misappropriated funds.
“Freed from his spell they became entitled to the return of the moneys—for the benefit not of the wrongdoer but of innocent investors and creditors—that the wrongdoer had made the corporations divert to unauthorized purposes,” she wrote.
Fraudulent Conveyance and Enrichment Claims Move Forward
The lawsuit includes claims of actual and constructive fraudulent conveyance, as well as unjust enrichment. The judge ruled that the plaintiffs had provided enough detailed information—such as transaction records and dates—to support their allegations.
“Plaintiffs have pleaded specific facts supporting an inference of actual fraudulent intent, and therefore, defendants’ motion to dismiss the actual fraudulent conveyance claim is denied,” Buchwald wrote.
One wire transfer labeled “Everyday is your Birthday” was specifically called out by the court for lacking a credible explanation. “An eight-word note in a bank statement does not demonstrate that the transfer was, in fact, for that purpose,” the judge noted.
Swizz Beatz Must Now Participate in Discovery
The court has ordered both parties to begin the discovery phase, meaning Dean will need to formally respond to the allegations and provide documentation.
Jho Low remains a fugitive and is the central figure in the 1MDB scandal, which has already led to prison time for former Malaysian Prime Minister Najib Razak and a conviction for Pras Michel of the Fugees. Michel was found guilty of federal charges tied to Low’s influence operations in the United States.