×
You will be redirected back to your article in seconds

Under Fire, Red Granite Declares It Is Still ‘Open for Business’

Red Granite Pictures, which finds itself at the center of a massive international corruption case, issued a statement Monday seeking to reassure the entertainment industry that it is still in business.

“Today we announce in no uncertain terms that Red Granite remains open for business, and that everyone involved with Red Granite can confidently continue to do business with us in the wake of the civil lawsuit filed by the government last month,” the company said in a statement.

The U.S. Department of Justice filed a $1 billion asset forfeiture case on July 20, alleging the widespread looting of 1MDB, a Malaysian development fund. It accuses Red Granite CEO Riza Aziz, the stepson of Malaysia’s prime minister, of taking some $74 million that traced back to the fund to finance Red Granite. It also accuses Aziz of using looted funds to buy luxury real estate in London, Beverly Hills and New York.

The government is seeking to seize any future proceeds owed to Red Granite from “The Wolf of Wall Street,” the 2013 film starring Leonardo DiCaprio and directed by Martin Scorsese, which it produced.

Late Monday, prosecutors filed a stipulation with Red Granite that sets up a procedure to segregate proceeds from two Red Granite films: “The Wolf of Wall Street” and “Friends With Kids,” a 2011 film starring Megan Fox. The second film was not previously part of the government’s case. As part of the stipulation, the government withdrew a proposed restraining order against the rights to “The Wolf of Wall Street.”

Instead, the stipulation maintains existing collection account management agreements, thereby allowing proceeds from the films to continue to flow to DiCaprio, Scorsese, Fox, the actors’ and directors’ guilds, and to Red Granite’s lenders.

Any portion of the proceeds from the two films that are due to Red Granite will be held in segregated accounts pending a ruling on the government’s asset forfeiture request. Prosecutors are ultimately seeking to return funds to the Malaysian people.

In its statement, Red Granite declared that the stipulation will allow business to proceed as usual.

“The agreement also makes clear that the government has no interest in interfering with Red Granite’s ongoing business and that there is nothing about its lawsuit that should prevent anyone from working with Red Granite,” the company said. “Red Granite has an exciting upcoming film slate, and we look forward to making many more great movies.”

Red Granite is producing “Papillon,” starring Charlie Hunnam, a remake of the 1973 film starring Steve McQueen.

The Justice Department has said that the investigation is ongoing.

More Biz

  • John Stankey

    John Stankey: HBO Max Will Appeal to 'Entire Family' With Broader Menu Than Disney Plus

    WarnerMedia’s HBO Max aims to compete against the Disney Plus streaming juggernaut next year by ensuring that the service’s content has plenty of appeal to viewers who are well past adolescence. John Stankey, president-chief operating officer of AT&T and CEO of WarnerMedia, said Tuesday during a Q&A at the UBS Global TMT conference in New [...]

  • ASCAP logo

    ASCAP Launches Tuneup, Wellness Program for Creators

    ASCAP (the American Society of Composers, Authors and Publishers) today announced the official launch of ASCAP TuneUp — a member program to meet the evolving wellness needs of music creators. The goal is to focus on “its members’ physical and mental well-being to support their creativity, life balance and longevity.” “Creating music is an all-consuming [...]

  • Pete Frates, who is stricken with

    Pete Frates, Inspiration for The Ice Bucket Challenge, Dies at 34

    Pete Frates, the inspiration behind 2014’s wildly successful ALS movement, the Ice Bucket Challenge, died on Monday. He was 34.  The historic Ice Bucket campaign raised over $115 million to combat ALS, or Lou Gehrig’s disease, which Frates also suffered from.  “Pete never complained about his illness,” his family said in a statement.  “Instead, he [...]

  • CBS HEADQUARTERS

    ViacomCBS Will Explore Sale of Black Rock CBS Headquarters

    ViacomCBS will explore the sale of the famous Black Rock building, which has served as the headquarters of CBS since the mid 1960s. Bob Bakish, CEO of the company, which was created last week from the merger of CBS Corp. and Viacom Inc., said the newly combined entertainment conglomerate would explore the sale of sundry [...]

  • The recipients of the 42nd Annual

    Heartfelt Tributes Trump Politics at Kennedy Center Honors

    WASHINGTON, D.C. — Political chatter was kept to a minimum Sunday night as the Kennedy Center Honors presented elaborate tributes to “Sesame Street” — made more poignant by the death of legendary puppeteer Caroll Spinney earlier in the day — as well as Sally Field, Linda Ronstadt, Earth, Wind and Fire and conductor Michael Tilson [...]

  • Chris Cornell’s Widow Sues Soundgarden

    Chris Cornell’s Widow Sues Soundgarden Over Royalties, Unreleased Recordings

    A long-simmering battle between Chris Cornell’s widow and the other members of Soundgarden broke into the open Monday morning when Vicky Cornell announced that she is suing the group over hundreds of thousands of dollars in allegedly unpaid royalties and the rights to seven unreleased recordings made before the singer’s death in May of 2017. [...]

  • Stephen Colbert Julia Louis-Dreyfus

    Julia Louis-Dreyfus Talks 'Seinfeld,' 'Sexist' Environment at 'SNL' in Q&A With Stephen Colbert

    Stephen Colbert and Julia Louis-Dreyfus swapped stories about “Saturday Night Live,” Northwestern University, “Seinfeld” and the possibility of running for office during a Q&A held Saturday as part of Montclair Film Festival’s annual “Evening with Stephen Colbert” fundraiser. Colbert, a Montclair resident, has long been a booster of the festival, which is going into its [...]

More From Our Brands

Access exclusive content