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U.S. Govt seeking rights to Wolf of Wall Street, Dumb & Dumber To, and Daddy's home

Trojita

Rapid Response Threadmaker
http://money.cnn.com/2017/06/15/media/dumb-and-dumber-daddys-home-malaysia-1mdb/index.html

First came "The Wolf of Wall Street." Now the U.S. government says two more feature films were financed by illicit foreign money.

In a complaint issued Thursday, the Justice Department claimed that tens of millions of dollars were diverted from a Malaysian government investment fund to produce "Dumb and Dumber To" and "Daddy's Home."

It's part of what prosecutors say was an enormous international fraud: Corrupt officials and financiers stole $4.5 billion from 1Malaysia Development Berhad (1MDB) between 2009 and 2015, laundering the money through a series of shell companies with bank accounts in the United States and abroad.

Prosecutors have filed to recover $1.7 billion.

The Justice Department says millions in stolen money was funneled through Red Granite Pictures, a Los Angeles production company. The government is laying claim to the movie rights from all three films in question, as well as any profits.
 

Trojita

Rapid Response Threadmaker
Additional Information

https://www.usatoday.com/story/money/2017/06/15/feds-seek-dumb-and-dumber-2-rights-forfeiture-bid-tied-malaysia-fund/102888262/

Artwork given to actor Leonardo DiCaprio, including a Pablo Picasso painting bought for $3.2 million, are also on the recovery list prosecutors disclosed Thursday as the estimated total value of assets in the U.S. allegedly linked to the scam rose to $1.7 billion.

The new forfeiture targets join a targeted inventory that already includes future profits from The Wolf of Wall Street, the 2013 blockbuster movie that starred DiCaprio, plus Old Masters artwork and luxury real estate in New York and California.
 

Figboy79

Aftershock LA
Fascinating.

Sometimes I think a lot of the movies where we go "Somebody actually made this?!" are probably part of some kind of money laundering, tax shit.
 
Pretty much every latter day Steven Seagal movie seems pretty fishy to me in that regard.

Guy had seven movies out last year, two of those got their direct-to-streaming release on the same day. Something there is up.
 
is-this-legal-absolutely-not-leonardo-dicaprio-the-wolf-of-wall-street.gif
 

Mr-Joker

Banned
Wait I am confused how does money laundering scheme work with movies, I mean how does the person get the clean money out of the movie?
 

Zubz

Banned
A Million Ways to Die in the West had to have been a money laundering scheme. No way anybody actually read that and said "hey, this is great!"

I had a roommate that made me & our other roommate watch it because he loved it. The other guy loved it, too...

MacFarlane could get away with a couple of flops because of Family Guy, but it wouldn't surprise me if this was true.
 

riotous

Banned
Investing in an actual entity is not how money laundering works lol. Money laundering typically involves running money through a business that can generate fake transations. Giving money to a film that fails would be a terrible way to "launder" money.

This is just people trying to make money off of their dirty money with clean investments.

In this case the money was already laundered before it reached the film investments.
 
Investing in an actual entity is not how money laundering works lol. Money laundering typically involves running money through a business that can generate fake transations. Giving money to a film that fails would be a terrible way to "launder" money.

This is just people trying to make money off of their dirty money with clean investments.

In this case the money was already laundered before it reached the film investments.

I imagine with Hollywood accounting, you cold realistically launder money through shitty movies.

Dont underestimate the power of Hollywood Accounting. Itll make your head spin.
 

riotous

Banned
I imagine with Hollywood accounting, you cold realistically launder money through shitty movies.

Hollywood accounting is used to make it appear you didn't make a profit, in order to avoid taxes.

Money laundering involves making it appear you did make a lot of profit, off of sales or transactions that never occurred, so that you can pay taxes on the money and avoid the IRS scrutiny for large purchases.

A theater could money launder quite easily, you could pretend tickets were sold while theaters were actually empty. Investing in a movie? I don't see how that could actually launder money.
 

Zubz

Banned
tommy wiseau's "the room" genuinely was used as a vehicle for money laundering.

He bootlegged jackets just to pay for the stuff he had to buy, & one of the producers was in a nursing home during the entire production process, & she only spoke to Tommy. Not a dime of that movie was clean.

I normally don't condone that behavior, but it adds to The Room's mystique so it gets a pass.
 

riotous

Banned
tommy wiseau's "the room" genuinely was used as a vehicle for money laundering.

How so? The movie was a huge failure and did not generate clean profits that could be used to launder money.

It could have been used to pay people who worked on the film more money than they deserved I guess. A sort of money laundering. But it also just could have been a scam. But if the money was dirty; that doesn't really work. The source of the money is not clean, and not laundered.
 

heyf00L

Member
Hollywood accounting is used to make it appear you didn't make a profit, in order to avoid taxes.

Money laundering involves making it appear you did make a lot of profit, off of sales or transactions that never occurred, so that you can pay taxes on the money and avoid the IRS scrutiny for large purchases.

A theater could money launder quite easily, you could pretend tickets were sold while theaters were actually empty. Investing in a movie? I don't see how that could actually launder money.

Hollywood accounting isn't about taxes. It's about moving the profits from Company A to Company B (and Company B will pay taxes) because Company A has some agreement to pay royalties or share profits. If it was for tax dodging, it would have been made illegal some time ago. The government will get its money.
 

riotous

Banned
Hollywood accounting isn't about taxes. It's about moving the profits from Company A to Company B (and Company B will pay taxes) because Company A has some agreement to pay royalties or share profits. If it was for tax dodging, it would have been made illegal some time ago. The government will get its money.

Very similar though; it's not a viable money laundering scheme.
 
Wow, I guess I missed how well that movie did.

It was excellent counter-programming to Star Wars that Christmas. I was actually shocked by how well it did, since I was predicting maybe a 20m+ opening weekend a month earlier from its release, but apparently the reteaming of Ferrell and Wahlberg was enough to get a lot of 20+ year olds to go the theater. Being released around Christmas helped legs as well.
 

Kumquat

Member
I imagine with Hollywood accounting, you cold realistically launder money through shitty movies.

Dont underestimate the power of Hollywood Accounting. Itll make your head spin.

Wolf of Wall St. was an amazing movie though. They did not do the money laundering through a bad movie right on that one. I mean Leonardo Di Caprio alone commands a very pretty penny.
 

midramble

Pizza, Bourbon, and Thanos
Though movies on streaming services could be laundering correct? Get a cheap bot network to purchase streams.

Collect money on weirdly popular direct to stream movie.
 
I had never thought about it but film making very well might be a good way to launder some money with phony production teams getting paid for phony work and who can tell what it is.
 

Lifeline

Member
Some gifts to Leonardo DiCaprio, who starred in "The Wolf of Wall Street," are in the mix, too.
One of the presents was an Oscar originally awarded to Marlon Brando.

Win a Oscar, lose a Oscar.
 
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