Monday, April 4, 2016

FBI probes 1MDB-Red Granite US$155m financing claim - WSJ

The US Federal Bureau of Investigation (FBI) is investigating allegations that 1Malaysia Development Bhd (1MDB) diverted US$155 million ($209 million) to US-based production company Red Granite Pictures, The Wall Street Journal (WSJ) reported.

WSJ, quoting people familiar with the FBI investigation, reported that the FBI issued subpoenas to several current and former employees of Red Granite, which is linked to Malaysia Prime Minister Datuk Seri Najib Tun Razak's stepson Riza Aziz. Riza is Red Granite chairman, according to WSJ.

According to WSJ's report, the FBI also issued subpoenas to a bank and an accounting firm, which Red Granite used. Red Granite is the producer of “The Wolf of Wall Street” movie.

"Global investigators now believe much of the money to make the movie about a stock scam was diverted from a state fund 9,000 miles away in Malaysia, a fund that had been established to spur local economic development.

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