(Mar 7): The producer of the "Wolf of Wall Street" agreed to pay US$60 million ($79 million) to settle claims it financed the movie with money siphoned from a Malaysian state investment fund.
The settlement between the US Justice Department and Red Granite Pictures Inc., which was co-founded by a stepson of Malaysian Prime Minister Najib Razak, also covers US forfeiture claims against the producer’s rights and interests in two other pictures, “Daddy’s Home” and “Dumb and Dumber To.”
See: How the 1MDB blockbuster starring Jho Low is dwarfing even Hollywood
The complaint targeting the 2013 picture, directed by Martin Scorsese, is among more than two dozen forfeiture lawsuits filed by the US against US$1.7 billion assets that were allegedly acquired with money stolen from 1Malaysia Development Bhd.
The assets include mansions in Beverly Hills, California, luxury condos in New York, jewellery and artworks.
See: Indonesia govt seizes Jho Low's US$260 mil superyacht in Bali
See also: Luxury yacht only the latest of Jho Low's assets to be seized
The Justice Department sought the profits, royalties and distribution proceeds that are owed to Red Granite Pictures. The movie starring Leonardo DiCaprio took in US$392 million in worldwide ticket sales, according to the website Box Office Mojo.
“We are glad to finally put this matter behind us and look forward to refocusing all of our attention back on our film business,” Red Granite said in a statement.
1MDB Probe
Riza Aziz, Najib’s stepson, is a friend of Low Taek Jho, also known as Jho Low, the Malaysian financier whom the US alleges orchestrated the scheme to loot US$4.5 billion from the Malaysian fund going back to 2009. Of the allegedly stolen money, US$1.7 billion has been traced to assets in the US and UK.
Most of the civil forfeiture cases have been put on hold while the Justice Department is pursuing a criminal investigation.
See: 1MDB failings, lapses 'valid' causes for concern, admits Najib
Elliott Broidy, a top Republican fundraiser for Donald Trump’s 2016 campaign, and his wife, engaged in contract negotiations to represent Jho Low, according to emails that his lawyer said were stolen when Broidy’s accounts were hacked.
The emails included talking points on why the US should drop its 1MDB probe. One draft contract showed that the firm of Broidy’s wife, who is an attorney, could have made US$75 million if they succeeded. It’s unclear what if anything came of the proposal. The Wall Street Journal first reported details of the effort.
See: Leaked emails showed Jho Low's associates in talks with Trump ally to drop 1MDB probe for US$75 mil
The case is US v. “Wolf of Wall Street,” 16-05362, US District Court, Central District of California (Los Angeles).
