Feds seek settlement in ‘Wolf of Wall Street’ case
Federal prosecutors are pursuing a potential settlement of their record-setting foreign corruption lawsuit that seeks $1 billion in assets, including future proceeds from the 2013 Hollywood hit movie The Wolf of Wall Street.
Characterized by federal officials as the largest attempted seizure under anti-kleptocracy laws in U.S. history, the case targets of- ficials who allegedly misappropriated profits from financial dealings of the Malaysian sovereign wealth fund known as 1MDB. Malaysia Prime Minister Najib Razak founded the fund to spur economic development. He has denied wrongdoing.
According to the Department of Justice, conspirators allegedly misappropriated more than $3.5 billion in a money laundering scheme from 2009 through 2013.
Officially, 1MDB was supposed to help Malaysia and its people by issuing debt securities that would fund economic development pro- jects. But federal prosecutors allege that suspected conspirators instead used a network of shell companies to siphon funds for purchases of U.S. mansions and luxury condominiums, gambling costs at Las Vegas casinos, purchase of artwork by Vincent Van Gogh and Claude Monet and other personal expenses.
Millions of dollars from 1MDB was used to finance The Wolf of
Wall Street, prosecutors charge. As a result, the federal recovery effort focuses in part on any rights, profits, royalties and distribution proceeds owed to Red Granite Pictures and related affiliates, which financed the film that starred actor Leonardo DiCaprio.
“The parties have been actively discussing a potential settlement that would completely resolve this matter,” prosecutors wrote in a Tuesday filing in a California federal court. Signed by lawyers representing the government and the Red Granite businesses, the filing seeks a legal extension until June 14 to continue negotiations.
DiCaprio in an October statement said he had contacted investigators to determine if he or his foundation had received gifts or donations linked to the Malaysian wealth fund and if so, would return them "as soon as possible."