'Wolf of Wall Street' producer to pay $60m settlement

2018-03-07 11:14 - Edvard Pettersson, Bloomberg
Post a comment 0


Los Angeles - The producer of the 'Wolf of Wall Street' agreed to pay $60m 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, 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.”

The complaint targeting the 2013 picture, directed by Martin Scorsese, is among more than two dozen forfeiture lawsuits filed by the US against $1.7bn 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, jewelry and artworks.

The Justice Department sought the profits, royalties and distribution proceeds that are owed to Red Granite Pictures. The movie starring Leonardo DiCaprio took in $392m 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 $4.5bn from the Malaysian fund going back to 2009. Of the allegedly stolen money, $1.7bn 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.

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 $75m if they succeeded. It’s unclear what if anything came of the proposal. The Wall Street Journal first reported details of the effort.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Read more about: companies  |  tech