×

‘Wolf of Wall Street’ Producer Red Granite’s CFO Back in Charge of Finances Amid Corruption Probe

In an unusual move, federal prosecutors have agreed to name the CFO of Red Granite Pictures as an “independent” fiduciary overseeing the company, while both sides seek to settle a massive corruption case.

Red Granite is accused of using funds stolen from 1MDB, a Malaysian development fund, to finance “The Wolf of Wall Street,” “Dumb and Dumber To,” and “Daddy’s Home.” The company’s CEO, Riza Aziz, is the stepson of the Malaysian prime minister. Prosecutors are seeking to seize Red Granite’s profits from the films on behalf of the Malaysian people.

In total, the government alleges that $4.5 billion was looted from 1MDB to buy a yacht, luxury real estate, jewelry, and fine art. Last week, the government gave notice that it would seek to put the civil forfeiture cases on hold so as not to jeopardize the cooperation of foreign law enforcement agencies in an ongoing criminal probe.

The government and Red Granite agreed in July to appoint “Looper” producer Douglas Hansen as an independent operational fiduciary for a period of at least 30 days. The purpose was to provide oversight of the company and help maximize the value of its assets. Red Granite is working to release a remake of “Papillon” starring Charlie Hunnam.

Thirty days later, Hansen has been excused from the job. Reached by phone, Hansen declined to discuss the move in detail. “It’s not a negative,” he said.

In a filing over the weekend, federal prosecutors agreed to name Randall Hermann, Red Granite’s CFO since August 2012, to succeed Hansen as the new “independent” fiduciary. The U.S. Attorney’s office declined to comment on the move.

“It’s extremely abnormal to leave an executive of a company permeated by fraud in charge as your fiduciary,” said attorney Lucas Rowe, a former federal prosecutor and an expert on asset forfeiture.

In a joint stipulation, Red Granite and prosecutors stated that Hermann will facilitate ongoing settlement talks and support Red Granite’s continuing operations. Red Granite has maintained that it did not knowingly receive stolen funds.

More Film

  • Ryan Reynolds Stunt

    Film News Roundup: Ryan Reynolds' Michael Bay Film '6 Underground' Wraps Production

    In today’s film news roundup, shooting has wrapped on Ryan Reynolds’ “6 Underground,” BAFTA LA names new board members, and the WGA East honors longtime exec Randall Jasta.  PRODUCTION Michael Bay’s Ryan Reynolds-starrer “6 Underground” has wrapped production. Netflix and Skydance Media completed principal photography in Abu Dhabi on the action-adventure, which reportedly carries a $125 [...]

  • Bruce Springsteen on Broadway

    Film Review: 'Springsteen on Broadway'

    Hope you like the 69-year-old version of Bruce Springsteen’s face, because it’s virtually all you’re going to see for the two hours and 40 minutes of the filmed “Springsteen on Broadway” — other than the bare brick wall of the theater casting a dim glow in the background beyond those gray sideburns, and two songs’ [...]

  • Editorial use only. No book cover

    'A Star Is Born,' 'Vice' Lead 2018 Australian Academy of Cinema and Television Arts Nominees

    The Australian Academy of Cinema and Television Arts (AACTA) announced their nominees for the 8th annual AACTA International Awards on Tuesday. “A Star Is Born” and “Vice” lead the pack, with five and four nominations respectively. The two leading films compete with “BlacKkKlansman,” “Bohemian Rhapsody,” and “Roma” for best film, while Nicole Kidman becomes the [...]

  • China's Government Orders Talent Home to

    After Golden Horse Awards Embarrassment, China Orders Talent Home for Huabiao Ceremony

    China’s government quietly ordered top Chinese talent back to the mainland from abroad this past weekend to attend a Beijing ceremony for its highest film industry honors, the loosely bi-annual Huabiao Awards. The move came just weeks after it directed mainland film executives and talent to snub after-parties and return home as quickly as possible [...]

  • Fotosintesis Readies Mexico-U.S. Immigration Animated Feature

    Fotosintesis Readies Immigration Animated Feature ‘Beast’ (EXCLUSIVE)

    BUENOS AIRES — Mexico City-based Fotosintesis Media, a joint initiative of Mexico’s Mantarraya Group and writer-director Miguel Angel Uriegas, is moving into pre-production this January on “Beast,” the third Mexican animated feature from the cause-driven entertainment label. News of the move comes as Uriegas presents at Ventana Sur’s Animation! forum 15 minutes of work in [...]

  • Scott Derrickson

    'Doctor Strange' Director Scott Derrickson to Return for Sequel

    “Doctor Strange” director Scott Derrickson has signed up for Disney-Marvel’s sequel. The studio, which had no comment, is about to start searching for a writer. Derrickson co-wrote the 2016 original with C. Robert Cargill and Jon Spaihts. Benedict Cumberbatch is expected to reprise his role as Stephen Strange, along with co-stars Benedict Wong and Rachel McAdams. [...]

  • Roma

    'Roma' Keeps Adding Theaters in Mexico

    “Roma,” Alfonso Cuaron’s deeply personal coming-of-age drama, is also a love letter to Mexico City. The sprawling metropolis — its cobblestoned streets, fading movie palaces, and lush parks — is practically a central character in the story of a family grappling with love and loss. Perhaps that’s the reason that “Roma” has been passionately embraced [...]

More From Our Brands

Access exclusive content