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Kimora Defies $25M 1MDB Mansion Seizure

Yahoo Finance •
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Kimora Lee Simmons remains in her $25 million Beverly Hills mansion purchased by estranged husband Tim Leissner with funds stolen from Malaysia's 1MDB sovereign wealth fund. The reality TV star has occupied the property for five years without making mortgage or rent payments while Leissner serves time in federal prison for his role in the $4.5 billion fraud scheme.

The legal dispute over the property's ownership extends to real estate moguls the Reuben brothers, who acquired the mansion after Leissner defaulted on a $12 million mortgage. Unlike other assets purchased with 1MDB funds that have been seized and repatriated, this Beverly Hills estate remains in legal limbo as Malaysia seeks recovery of stolen assets.

The ongoing civil battle entered its fifth year with a trial-setting conference scheduled for February 25. Simmons claims Leissner sold the property fraudulently without proper authority. The case represents an unusual exception in the global effort to recover approximately $1.4 billion stolen from 1MDB, marking the largest recovery in DOJ history and highlighting challenges in tracing illicit funds through complex real estate transactions.