The stepson of Malaysia's leader reached a multi-million dollar settlement over alleged pilfering from the country's 1MDB fund.
Red Granite, the production company co-founded by Riza Aziz, the son of Malaysia first lady Rosmah Mansor and stepson to Prime Minister Najib Razak, will shell out $60 million to the U.S. government.
The payment settles a civil suit brought by the government, which is eager to get at assets that its criminal investigators allege were part of more than $4 billion stolen from 1MDB in Malaysia.
The settlement raises delicate questions for Prime Minister Najib: he faces elections in coming months, as well as embarrassing revelations about efforts to end the U.S.-led probe, which is being supported by five other countries including Switzerland and Singapore.
Luxury Seizure
The film production firm's cash, which bankrolled blockbuster «The Wolf of Wall Street», is one of countless assets being scrutinized by prosecutors, who suspect they were at least partly paid for by money pilfered from 1MDB, a state fund. Others include a superyacht (which was impounded last week), a string of luxury properties, and million-dollar diamonds for Malaysia's first lady.
Aziz's firm will pony up $30 million of the total within the next month, then another $30 million within the next year. Aziz will not be paid a salary by Red Granite, which he founded in 2010, until the funds have been paid, except the minimum required to maintain U.S. health insurance coverage.
No Wrong-Doing
Because it is a civil lawsuit with the U.S. government, the settlement cannot be seen as «an admission of wrongdoing or liability on the part of Red Granite», according to a court filing.
«We are glad to finally put this matter behind us and look forward to refocusing all of our attention back on our film business,» Red Granite said in a statement according to «Reuters».
U.S. attorney general Jeff Sessions has referred to 1MDB as «kleptocracy at its worst», but the scandal has barely rippled in Malaysia.
