Los Angeles, California – February 13, 2026 — American model, fashion designer, and reality TV personality Kimora Lee Simmons is reportedly refusing to leave her $25 million Beverly Hills mansion, which federal prosecutors claim was purchased using funds embezzled by her estranged husband, businessman Tim Leissner.
The sprawling 11,000-square-foot property, located in one of the most exclusive enclaves of Beverly Hills, became the center of a high-profile legal dispute after Leissner—former Southeast Asia chairman of Goldman Sachs—pleaded guilty in 2018 to his role in the multi-billion-dollar 1Malaysia Development Berhad (1MDB) scandal. Prosecutors allege that a portion of the embezzled funds was used to acquire the mansion in 2017, during the couple’s marriage.
According to court filings and sources familiar with the matter, the U.S. Department of Justice (DOJ) and the Government of Malaysia (as co-claimant in the asset forfeiture proceedings) are seeking to recover the property as proceeds of crime. The mansion is one of several luxury assets—including yachts, private jets, jewelry, and artworks—tied to the sprawling 1MDB corruption case that has ensnared high-profile figures across the globe.
Simmons, 50, who shares custody of two children with Leissner (the couple separated in 2018 and divorced in 2020), has reportedly argued in legal filings that she is a bona fide purchaser for value without knowledge of the alleged illicit source of funds. She maintains that the home was acquired legitimately during their marriage and that she and the children have resided there continuously since purchase. Sources close to Simmons say she views the property as the family’s primary residence and has no intention of vacating it while the forfeiture proceedings remain unresolved.
The legal battle has dragged on for several years, complicated by overlapping civil and criminal asset recovery efforts. In 2020, a U.S. federal court in California issued a preliminary order of forfeiture for the mansion, but Simmons has successfully delayed enforcement through various motions, including claims of innocent ownership and due process violations. The case is currently before the U.S. District Court for the Central District of California.
Representatives for Kimora Lee Simmons declined to comment directly on the ongoing litigation but issued a brief statement through her publicist:
“Ms. Simmons is fully cooperating with all lawful processes and remains focused on protecting the best interests of her children. She continues to reside in the family home consistent with her legal rights and will address all matters through the appropriate judicial channels.”
Tim Leissner, who has cooperated extensively with U.S. authorities since his guilty plea, has already forfeited hundreds of millions of dollars in assets as part of his sentencing obligations. He was ordered to pay over $43 million in forfeiture and faces up to 10 years in prison, though his cooperation has reportedly reduced his exposure.
The 1MDB scandal remains one of the largest financial fraud cases in history, involving the alleged misappropriation of more than $4.5 billion from Malaysia’s sovereign wealth fund. The DOJ has recovered or is seeking to recover approximately $2.7 billion in assets worldwide, including high-profile luxury items linked to Leissner and his former wife, supermodel Heidi Klum (whom he divorced in 2014).
The Beverly Hills mansion—featuring seven bedrooms, a home theater, infinity pool, and panoramic views of the city—has been described in court documents as one of the most valuable single assets still in dispute in the 1MDB recovery effort. Real estate records show it was purchased in 2017 for $25 million through a trust linked to Leissner and Simmons.
As the forfeiture action nears potential resolution, legal experts anticipate that the court may soon rule on whether Simmons can retain ownership or must surrender the property. Any final order would likely trigger an appeal, further prolonging the dispute.
The case continues to draw attention due to Simmons’ high public profile as a fashion entrepreneur, former host of “Kimora: Life in the Fab Lane,” and mother of four. She has largely stayed out of the media spotlight regarding the mansion dispute, focusing instead on her business ventures and family life.
The U.S. Attorney’s Office for the Central District of California and the Malaysian government have not issued new statements on the matter in recent months, but the asset remains under court supervision pending final adjudication.
