KUALA LUMPUR – Former prime minister Datuk Seri Najib Razak’s stepson Riza Shahriz Abdul Aziz, production company Red Granite Pictures and Red Granite Capital Limited are named in a suit for misappropriating US$250 million (RM1.03 billion) from 1Malaysia Development Bhd (1MDB).
1MDB along with three of its subsidiaries – 1MDB Energy Holdings Limited, 1MDB Energy Limited, and 1MDB Energy (Langat) Limited – named Riza, Red Granite Pictures Inc, Red Granite Capital Limited, and Shearman & Sterling as defendants in their writ of summons at the Kuala Lumpur High Court yesterday.
In its endorsement of claim attached to the writ, 1MDB alleged that in 2011 and 2012, Riza along with both Red Granite companies received US$250 million from 1MDB.
“The first defendant (Riza) who controls both Red Granite companies, knew or ought to have known that those funds had been misappropriated.
“They used those funds for their personal benefit and for the benefit of their associates, including for the purposes of financing movie productions and purchasing various real estate,” the endorsement of claim read.
Meanwhile, the fourth defendant Shearman & Sterling, which is a law firm, allegedly allowed Riza and fugitive businessman Low Taek Jho to use their interest on lawyer accounts to launder a substantial portion of the misappropriated funds.
“The fourth defendant (Shearman & Sterling) had knowledge, being either actual knowledge or knowledge which is to be inferred from wilful blindness or reckless indifference, or alternatively was put on enquiry and failed to make necessary enquiries, that the funds in questions were the proceeds of crime,” the endorsement of claim added.
Now, 1MDB is seeking a declaration from the court that Riza is liable to account for the money misappropriated from the sovereign wealth fund, or in the alternative, a declaration from the court that 1MDB is entitled to repayment by Riza on the grounds that he was unjustly enriched.
From both Red Granite companies, 1MDB is seeking a similar declaration from the court stating that both production companies are liable to account for the misappropriated monies to the sovereign wealth fund.
Meanwhile, 1MDB is also seeking damages from Shearman & Sterling over breaches of statutory duties.
The writ of summons for 1MDB was filed and issued by Shearn Delamore & Co and the matter was scheduled for case management today.
Riza Aziz and Red Granite made international headlines when they produced Oscar-nominated The Wolf of Wall Street, starring Leonardo DiCaprio.
This is part of the 22 suits filed by 1MDB and former subsidiary SRC International Sdn Bhd last month. Among the defendants named are Najib, suing foreign banks, former Treasury secretary-general Tan Sri Mohd Irwan Serigar, former 1MDB CEOs Datuk Shahrol Ibrahim Halmi and Arul Kanda Kandasamy. – The Vibes, June 8, 2021
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