The court justified the lengthy sentences, citing the significant sums involved and the serious nature of their crimes, stating that the defendants acted with “selfish motives.” Additionally, they are required to compensate 1MDB for the misappropriated funds and forfeit part of their seized assets.

While the court dismissed the immediate detention of the two men, citing insufficient evidence of a flight risk, they have the right to appeal both the verdict and the sentences. Obaid’s lawyer, Myriam Fehr-Alaoui, expressed disappointment that critical defense arguments were overlooked, while Mahony’s attorney, Laurent Baeriswyl, criticized the court for excluding key witnesses and disregarding exonerating evidence.

This conviction represents a significant win for Swiss prosecutors, who aim to reinforce Switzerland’s stance on white-collar crime. Meanwhile, Jho Low, the alleged mastermind of the larger $4.5 billion fraud, remains elusive. The scandal also implicated two Goldman Sachs bankers, leading the bank to pay $2.5 billion in a 2020 settlement with the Malaysian government.

In a statement, the board of 1MDB expressed satisfaction with the ruling, affirming their commitment to pursue justice and recover the misappropriated assets. Obaid and Mahony, both alumni of a Geneva private school, were accused of fabricating a bogus oil exploration firm as early as 2009, deceiving 1MDB officials into believing they were negotiating on behalf of a Saudi king, while claiming ownership of an oil field they never possessed.