A New York federal judge has refused to dismiss a $7.3 million lawsuit against hip-hop producer Swizz Beatz, ruling that liquidators for two alleged shell companies linked to the 1Malaysia Development Berhad scandal had plausibly alleged fraudulent transfers and related claims.

Judge Flags “Badges of Fraud”

U.S. District Judge Naomi Reice Buchwald issued a 47-page opinion Friday, concluding that the allegations demonstrated classic “badges of fraud.” Among them: the “unusually close” bond between Swizz Beatz, whose real name is Kasseem Dean, and fugitive Malaysian financier Jho Low.

The judge noted Low once gifted Dean an Andy Warhol print worth $1 million and pointed to evidence of “hasty transfers” funneled through hollow entities with no staff, board, or even office space.

The Alleged Transfers

Liquidators Angela Barkhouse and Toni Shukla claim Dean and his companies — Swizz Beatz Productions Inc. and Monza Studios Inc. — received about $7.3 million from Low between 2012 and 2014. The suit contends those funds were fraudulently diverted from 1MDB through entities Affinity Equity International Partners Limited and Alsen Chance Holdings Limited.

Prosecutors in Malaysia and New York separately accuse Low and two ex-Goldman Sachs bankers of laundering billions from 1MDB, with Low allegedly pocketing $1.42 billion personally.

Timeliness and Tolling

Dean argued the case was filed too late, citing New York’s six-year statute of limitations. But Judge Buchwald sided with the liquidators, ruling that the “adverse domination” doctrine — which tolls the statute while wrongdoers control the corporate plaintiffs — could apply under New York law.

The liquidators alleged Low exercised such control through associate Eric Tan, who held bank accounts in his name but operated for Low’s benefit. Judge Buchwald emphasized the companies were mere shells, carrying debts but no assets, stock, or records.

What’s Next

With dismissal denied, the case moves to discovery. Casey D. Laffey of Reed Smith LLP, representing the liquidators, said the funds should be returned to help Malaysia’s sovereign wealth fund and its citizens.

Dean, married to singer Alicia Keys, has not publicly responded. His legal team at Blank Rome LLP did not immediately return requests for comment.

The case, which threads celebrity, art, and an infamous global corruption scandal, now advances deeper into litigation, keeping Swizz Beatz in the legal spotlight.