“Billion Dollar Whale” (2018) is a book by Hope and Wright chronicling the story of Jho Low, the man who stole billions of dollars from the Malaysian government to fund his lavish lifestyle.

About Jho Low

From a psychological perspective, Low seemed to be a mix of a man with an extreme personal drive to accumulate and wealth, as well as to spend that wealth, and to show off.
Low was a compulsive spender for himself, as well as a compulsive spender on others as a way to enhance his status.
He craved recognition, and he didn’t even hit on many of the women he regaled with expensive gifts.

Here’s my summary and review of the most important bits, from a strategies and power dynamics perspective:

Notes

1. To Steal Money, Low Learned How to Hide It

Says the author:

Jho Low’s story epitomizes the shocking power of those who learn how to master the levers of international finance in the twenty-first century.

• Shell corporations in high-secrecy jurisdictions

To begin with, you want to incorporate in high-secrecy jurisdictions. Also see the review of “Tax-Free Today“.

• Pompous names

Low set up two shell companies with the names of “ADIA Investment Corporation” and “KIA Investment Corporation”. Low chose these names because they looked related to the Abu Dhabi Investment Authority, or ADIA, and Kuwait Investment Authority, or KIA, two famous, multi-billion-dollar sovereign wealth funds. But of course, they had no real links to the funds.

• IOTAs to get money into the US

Say the authors:

Lawyers, unlike bankers, don’t have to conduct due diligence on a client. Details of transfers through IOLTAs, meanwhile, are protected by lawyer-client privilege.

• Art and jewels to launder money

Dealers are not required to disclose the identities of their customers, and often don’t even know who’s actually behind the purchases. Some of the most famous art galleries also offer storage of goods, so they can be turned into banks.

• Yacht to stay out of reach

You can move them anywhere and they stay outside of the reach of different governments, moving only where you are welcomed (and being welcomed means that you must pay and/or ingratiate someone).

2. Developed and Nurtured Powerful Contacts & Friends

Much of Low’s life success, which would have been a successful life even without stealing, was based on contacts and social networks.

Say the authors:

He began to see Wharton foremost as a place to socialize and build his contacts.

And about his partying as a way of making friends:

For sure, he enjoyed partying, and he liked having pretty women around, but more than anything this was an investment, one that made him appear successful and indispensable.

3. Feeding Allies to Keep Them Friendly

People will give you opportunities, support, and favor, if you keep feeding them with what they want.

Say the authors:

In these early stages, he began to focus on how to reward his allies—foremost among them Abu Dhabi executives and the family of Prime Minister Najib Razak

Low was able to get government money because he made his prime minister friend and his wife the recipients of his gifts and largesse.
Najib closed both eyes, never asked questions, and supported Low, because he was getting his big kickbacks.

4. Appeared More Powerful Than You Really Are

Low’s rise to power was largely based on the fact that some people who are used to luxury never prod too much to make sure they understand who they’re dealing with.
They feel entitled, and if some guys appear to be on their same level, they rarely spend much time checking their credentials and background. All the more so if that guy provides what they want: money and luxury.

Say the authors about Low pretending to be a power-broker between the Malaysian government and Saudi Arabia:

Low was doing his all to give the impression that he was indispensable, and the meeting with Prince Turki on the Alfa Nero in August was meant to deepen that feeling. Unbeknownst to Najib and Rosmah, it was a setup, a facade of officialdom, aimed at making the prime minister and his wife feel they were getting close to Saudi Arabia’s royal family.

The Saudi prince was also a great target for Low: he was a true blue blood and a big name, but had uncertain political prospects and needed cash. So he was amenable to Low’s promises of future financial rewards.

5. Charm Often Beats Raw Dominance or Aggression

Low was an unassuming man, in many ways.
He remained out of the limelight, was rarely seen enjoying his own parties, and seemed more steeped into making others feel powerful, than to overpower others.

Say the authors about Jho Low when he was a student:

Many adults remember Low as smooth and deferential, but adept at using this charm to get what he wanted.

And:

With his soft way of talking, almost inaudible at times, it was easy to forget you were doing what Low desired. In 2003, he persuaded his Arab friends to help him set up a tour around the Middle East, introducing him to the richest families and most influential firms.

Low was especially obsequious with those with power, and whom he needed. Say the authors:

Since coming into Najib’s orbit, Low was always careful to remain subservient to the prime minister, calling him “my PM,” and this extended to Rosmah and her son.

But He Was High In Machiavellianism

However, he showed early Machiavellian propensities, and he was happy to use those skills to find ways around the rules.
For example, he forged a letter from the embassy of Brunei to reserve tables at a hip and expensive club, and partied there with his friends.

Say the authors about that early experience:

It was a lesson that power and prestige—or at least the appearance of it—opened all kinds of doors.

6. Learn Power Dynamics

This is a shrewed email Low send out to his bankers when he was asked for comp

“When good wealth creation is generated, as a matter of cultural respect and good fortune that arises from respect, we always give our parents the proceeds. This is part of our custom and culture.”

In the email, Low explained that it was custom for the elders to decide.

“In this case, my father receives it as a token of gesture, respect and appreciation and decides to give it back to me for me to then subsequently provide a portion for the benefit of my family trust.”

He then used the Swiss bankers’ ignorance agains them to chastitize them and put them back in their places:

“I hope this clarifies as this is culturally sensitive and it would be taboo and bad luck otherwise and our family is very particular about respect of the elderly and being appreciative to family.”

Low then added an even bigger power move.
He knew BSI was dependent on his business and leveraged that:

“I hope I do not need to keep explaining the same matter over and over again as our time is better spent generating wealth so that the AUM [Assets Under Management] in BSI Bank can be increased as opposed to providing answers for questions which have already been provided for previously. I fully understand and respect the requirement of compliance, but one should not be over burdening your customers [especially] when they have been addressed in the past.”

Good to Know…

• Secrecy can be a red flag

Many rich people spend as a way to gain status.
Reporters were invited to Low’s parties, but they couldn’t write about Low himself. Usually, when a rich man spends to attract attention, but doesn’t want his name public, there are good chances he might be hiding something.

• The world today offers more opportunities for hiding

For decades, the world was divided into two major spheres of influence: USSR, and the US/West.

But people who wanted to live the life had to depend on the West and US, since the USSR was communist, and most of the rest of the world was too poor.

With the rise of China and the rise of capitalism in Russia, global conmen can steal and remain out of reach from the US and other Western countries while still enjoying a lavish lifestyle.

Quotes

Steal a little, and they throw you in jail. Steal a lot, and they make you king

About Low, a guy who was all about getting out the most from social exchanges.

Low’s bashful manners belied a hard core of ambition the like of which the world rarely sees. Look more closely, and Low was not so much timid as quietly calculating, as if computing every human interaction, sizing up what he could provide for someone and what they, in turn, could do for him.

On women used as decorations for rich men:

The first of scores of young models wearing red dresses, some of whom handed out drinks and food, while others—in the crude language of nightclubs—acted as “ambient” decorations.

On men throwing money around (and women getting on their knees to pick it up):

After an early winning streak against the house, some of the Asian men began to throw chips around the room. Some of the Playmates, who were mingling on the sofas and around the table, chased after them, down on their hands and knees.

Review

“Billion Dollar Whale” was a fascinating read on conman psychology, power dynamics, and social manipulation.
If you’re this interested in winning in life, you may want to check out our training program, where we teach men how to achieve their goals while remaining honorable: