×

Judge Approves Financial Overseer for Red Granite Pictures

A federal judge has agreed to the appointment of an independent financial overseer at Red Granite Pictures, as the company seeks to work with the U.S. Attorney’s office to resolve its piece of a massive corruption case.

The government alleges that Red Granite used funds that were embezzled from Malaysia to produce at least three films: “The Wolf of Wall Street,” “Daddy’s Home,” and “Dumb and Dumber To.” The U.S. is seeking to seize Red Granite’s portion of the proceeds from those films as part of a much broader effort to recoup funds allegedly stolen from 1 Malaysia Development Berhad (1MDB).

In a court filing, U.S. prosecutors and Red Granite agreed to the appointment of an “independent operational fiduciary,” who will be able to examine the company’s books and oversee transactions for a period of at least 30 days. Among the official’s responsibilities will be “maximizing Red Granite’s value as a going concern” as well as to “preserve and protect Red Granite’s assets pending a settlement among the Parties or further order of the Court.”

The government has claimed that $4.5 billion in total was stolen from the Malaysian development fund, and used to buy luxury real estate, fine art and a yacht. Last month, the government moved to take possession of three artworks that had been given as gifts to Leonardo DiCaprio.

Red Granite, whose CEO Riza Aziz is the stepson of the Malaysian prime minister, has maintained that it did not knowingly take stolen funds.

Judge Dale Fischer, who had rejected the appointment agreement when it was first proposed, signed off on the plan on Friday. The overseer will be paid by Red Granite, and is expected to be appointed within the next week.

More Biz

  • Why the Oscars, Emmys Shouldn't Try

    Grammy Awards Nominating Is Marred by Insider Deals, Ousted CEO’s Complaint Alleges

    Amid the multiple claims in former Recording Academy boss Deborah Dugan’s blockbuster complaint against the organization is a section that is deeply critical of the Grammy Awards nominating processes and essentially accuses it of insider dealing and corruption. Its allegations, if true, suggest worst-case scenarios, many involving the Board of Trustees that ultimately controls the [...]

  • The Irishman

    Netflix Adds 8.8 Million Subscribers in Q4, Cites Competition for Lower U.S. Gains

    Netflix beat its forecast for overall subscriber additions for the fourth quarter of 2019, while it brought in fewer than expected U.S. streaming customers. The company added a net 420,000 streaming customers in the U.S. and 8.33 million overseas in the year-end 2019 quarter, for a total of 8.76 million net adds. Netflix had previously [...]

  • Chris McCarthy Sets ViacomCBS Team for

    Chris McCarthy Sets ViacomCBS Leadership Team for Entertainment & Youth Division

    ViacomCBS’ senior leadership ranks are coming into sharper focus as Chris McCarthy, head of the sprawling Entertainment and Youth wing has solidified his senior leadership team. A number of executives closely associated with McCarthy are gaining additional responsibilities, including programming maven Nina Diaz, MTV chief marketing officer Jacqueline Parkes and PR chief Liza Burnett Fefferman. [...]

  • caa logo

    CAA Sets Eleven-Member Board to Manage Day-to-Day Operations

    Creative Artists Agency (CAA) announced Tuesday that the agency is establishing a board to manage its daily operations. The CAA Board will consist of eleven members: Risa Gertner, Michael Levine, Emma Banks, Joe Cohen, Maha Dakhil, Paul Danforth, Michelle Kydd Lee, Joel Lubin, Sonya Rosenfeld, Rick Roskin, and Tiffany Ward. Each board member will continue [...]

More From Our Brands

Access exclusive content