Feds seek settlement of 'Wolf of Wall Street' foreign corruption case

Federal prosecutors are pursuing a potential settlement of their record-setting foreign corruption lawsuit that seeks $1 billion in assets, including future proceeds from the 2013 Hollywood hit movie The Wolf of Wall Street.

Characterized by federal officials as the largest attempted seizure under anti-kleptocracy laws in U.S. history, the case targets officials who allegedly misappropriated profits from financial dealings of the Malaysian sovereign wealth fund called 1MDB. Malaysia Prime Minister Najib Razak, who founded the fund, has denied wrongdoing.

According to the Department of Justice, conspirators allegedly misappropriated more than $3.5 billion from 1MDB in a money laundering scheme from 2009 through 2013.

Officially, 1MDB was intended to help Malaysia and its people by issuing debt securities that would fund economic development projects. But federal prosecutors allege that suspected conspirators instead used a network of shell companies to siphon funds for purchases of U.S. mansions and luxury condominiums, gambling costs at Las Vegas casinos, purchase of artwork by Vincent Van Gogh and Claude Monet and other personal expenses.

Feds move to seize 'Wolf of Wall Street' rights in 1MDB probe

Millions of dollars from 1MDB was used to finance The Wolf of Wall Street, prosecutors charge. As a result, the federal recovery effort focuses in part on any rights, profits, royalties and distribution proceeds owed to Red Granite Pictures and related affiliates, which financed the film that starred actor Leonardo Dicaprio.

"The parties have been actively discussing a potential settlement that would completely resolve this matter," prosecutors wrote in California federal court application submitted Tuesday.

Signed by lawyers representing the government and the Red Granite businesses, the filing seeks a legal extension of time until June 14 so both sides may continue negotiations.

A settlement potentially would enable the Trump administration to resolve a billion-dollar recovery case filed during President Obama's tenure without the risk, time and expense of a court trial.

DiCaprio embroiled in Malaysian money scandal

DiCaprio in October issued a statement saying he had initiated contact with government investigators to determine whether he or his foundation had received gifts or donations linked to the Malaysian wealth fund and if so, would return them "as soon as possible."

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc