Investigators in the United States have reportedly said that 1Malaysia Development Bhd funds had been ‘stolen’ by officials and their associates.
The US Department of Justice (DoJ) — in civil complaints filed to seize assets it said were the result of $3.5 billion that had been misappropriated from the controversial state investment firm —claimed that 1MDB officials had allegedly used some of its proceeds to fund the production of the Martin Scorsese film, ‘The Wolf of Wall Street’, the Wall Street Journal reported Wednesday.
Among other assertions reportedly made by the DoJ were that some $1 billion originating from 1MDB went to purchases of hotels, luxury real estate in Manhattan, Beverly Hills and London, fine art and a private jet, the WSJ said.
The 2013 film reportedly had a budget of more than $100 million and was produced by little-known Hollywood production house, Red Granite Pictures.
Prime Minister Najib Razak’s step son, Riza Aziz, is listed on the company’s website as one of its co-founders.
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“The Malaysian people were defrauded on an enormous scale,” Deputy FBI Director Andrew McCabe said, the WSJ reported.
According to the WSJ, this asset seizure would be the largest ever by the DoJ’s anti-corruption unit.
1MDB, in a media statement released today, said it knows of the US Attorney General’s press conference, but stated that ‘it is not a party to the civil suit, does not have any assets in the United States of America, nor has it benefited from the various transactions described in the civil suit.’
“Furthermore, 1MDB has not been contacted by the US Department of Justice or any other foreign agency in relation to their investigations.”
“As previously stated, 1MDB will fully cooperate with any foreign lawful authority, subject to international protocols governing such matters and the advice of the relevant domestic lawful authorities,” it said on its website.
Red Granite, meanwhile, released its statement, as reported by Variety, denying that funding received four years ago for the hit film ‘was in any way illegitimate and there is nothing in today’s civil lawsuit claiming that Red Granite knew otherwise.’
“Red Granite continues to cooperate fully with all inquiries and is confident that when the facts come out, it will be clear that Riza Aziz and Red Granite did nothing wrong.”
“Red Granite does not expect the lawsuit – which is limited to future proceeds generated by a single film, and which was not filed against Red Granite or any of its employees – to impact its day to day operations, and the company continues to move forward with exciting new projects.”
According to the 136-page civil complaint (read it here) filed by the DoJ, between June 2012 and November 2012, an investment firm tied to 1MDB sent 238 million dollars to an account controlled by Aziz, AFP reported.
About $100 million of these funds were allegedly sent to a bank account linked to the production house and used to fund its operations, including “The Wolf of Wall Street.”
Some of the money was also allegedly used for extravagant trips to Las Vegas where hundreds of thousands of dollars where spent gambling at The Venetian casino, according to the complaint.
Among those who were invited to take part in a July 2012 gambling jaunt was “a lead actor in The Wolf of Wall Street” who won a Golden Globe for the movie, according to the complaint.
Although the court document does not name the actor, it is clearly referring to DiCaprio.
The actor won a Golden Globe in 2014 for his portrayal in the film of stockbroker Jordan Belfort, who fleeced investors of millions of dollars before ending up in prison.
Assistant Attorney General Leslie Caldwell told reporters on Wednesday that all assets and rights to the movie would be seized as they stem from laundered money.
According to comScore, the movie made $392 million. It was nominated for five Academy Awards.
“Neither 1MDB or the Malaysian people saw a penny of profit from that film or the other assets purchased with funds syphoned from 1MDB,” Caldwell said. “Instead, that money went to relatives and associates of the corrupt officials of 1MDB and others.” — With text from AFP
