Investigators believe that more than $100 million of the production budget for Martin Scorsese's film The Wolf of Wall Street came from a Malaysian state fund linked to a major corruption scandal, according to the Wall Street Journal. The fund, 1MDB, was established to boost economic development in Malaysia but is now at the centre of investigations in multiple countries.
The money allegedly moved into Red Granite Pictures, the Hollywood production company behind the film, via a circuitous route. Red Granite was co-founded by Riza Aziz, the stepson of Malaysian Prime Minister Najib Razak, who set up 1MDB seven years ago. The fund is also believed to have financed the lavish lifestyle of Low Taek Jho, known as Jho Low, a friend of Aziz and a notorious New York playboy.
In 2013, the year The Wolf of Wall Street was released, at least $681 million, which the Malaysian government claimed was a gift from the Saudi royal family, ended up in Prime Minister Razak's personal bank accounts. Although Razak was cleared of corruption in January, the case triggered an FBI investigation into 1MDB. Goldman Sachs, which helped raise $6.5 billion for the fund, now faces a congressional hearing over its Malaysian dealings.
The FBI has issued subpoenas to several current and former employees of Red Granite. A company spokesman said they are cooperating fully and have no reason to believe the source of their financing was irregular. 1MDB has denied any investment in or transfer of funds to Red Granite Pictures.
The scandal came to light last year when the Sarawak Report, a UK-based investigative site, published internal emails allegedly showing that $700 million from a deal between 1MDB and Saudi energy company PetroSaudi was sent to a company controlled by Low. Low's whereabouts are unknown, but he has denied any wrongdoing.
