Explained | Leonardo DiCaprio testifies at rapper Pras Michel's money-laundering, bribery trial

Hollywood star Leonardo DiCaprio has testified in the trial of rapper Pras Michel, better known as Pras. A former member of the hip hop group Fugees, Pras allegedly received an amount of $100 million from Jho Low, a Malaysian fugitive businessman, and financier who is wanted by international authorities in connection with the 1Malaysia Development Berhad scandal (1MDB scandal). Pras is undergoing trial related to conspiracy and witness tampering charges. He is accused, among other things, of making illegal contributions to Barack Obama's 2012 US presidential campaign. But how is DiCaprio involved in the case? The Revenant actor is not facing any criminal charge but was asked to testify due to his links to Low.

Also Read:Leonardo DiCaprio takes stand at trial of rapper Pras Michel over money laundering

Here is an explainer:

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What is 1MDB scandal?

The 1MDB scandal is a corruption scandal that involves the Malaysian government investment fund, 1Malaysia Development Berhad. The fund was established in 2009 by the then-Prime Minister of Malaysia, Najib Razak, with the aim of promoting economic development in the country. However, over the years, billions of dollars from the fund were allegedly siphoned off by high-level officials and their associates for personal gain. The scandal involved allegations of fraud, embezzlement, money laundering, and bribery. It all first came to light in 2015 when investigations by international media outlets and anti-corruption organisations revealed suspicious financial transactions linked to the fund. The revelations triggered a series of investigations in Malaysia and several other countries.

Also Read:Leonardo DiCaprio was questioned by FBI over connection with Malaysian fugitive

The scandal had far-reaching consequences for Malaysia, leading to significant political and economic turmoil. In addition to the downfall of the ruling party, the scandal also resulted in the loss of investor confidence in the country. The investigations revealed that funds from 1MDB were used for lavish parties, expensive art purchases, luxury properties, and other extravagant expenses. Some of the funds were also allegedly used to finance political campaigns.

Najib Razak was one of the main figures implicated in the scandal, and he was found guilty of multiple charges related to the 1MDB scandal in 2020. He was sentenced to 12 years in prison and ordered to pay a fine of around $50 million.

The case has had international repercussions, with authorities in several countries, including the United States and Switzerland, launching investigations into allegations of money laundering and corruption related to the scandal. The total amount misappropriated from the fund is estimated to be around $4.5 billion.

Low is alleged to have played a central role in the embezzlement of funds from 1MDB. He remains at large and is believed to be living in China.

Leonardo Dicaprio's connections with Jho Low

DiCaprio's connection to Low has long been known, and it has been the subject of legal and media scrutiny for years. According to federal prosecutors, Low used his vast resources to curry favour with celebrities, including DiCaprio, who attended "a multitude of lavish parties" on yachts and nightclubs at Low's invitation, alongside other celebrities, actors, and musicians.

DiCaprio and Low became close after meeting in a nightclub in 2010. The two had discussed several business ideas, including a mega-fund for filmmaking and an eco-friendly resort in Belize. Additionally, Low had financed DiCaprio’s 2013 movie, The Wolf of Wall Street, and gifted him various luxury items such as Marlon Brandon’s $600,000 Oscar statue and a $9m Jean-Michel Basquiat painting.

As per Bloomberg, Low was also reportedly "especially generous" with DiCaprio and donated a $3.2m work of art by Picasso to his charity, in addition to a $9.2m piece from Jean-Michel Basquiat. DiCaprio later turned those items and others received from Low over to authorities.

What did Leonardo DiCaprio say in his testimony?

DiCaprio testified that he met Low in 2010 and believed him to be a legitimate businessman with many connections. Low became a regular contributor to DiCaprio’s charitable foundation and eventually floated the idea of providing the primary financing for The Wolf of Wall Street, which DiCaprio's team and studio approved.

“I was given the green light by my team as well as my studio. He was a legitimate business person wanting to invest in the movie," said DiCaprio.

DiCaprio also recalled a casual conversation with Low in which Low talked about donating to Obama's 2012 reelection campaign.

“It was a significant sum – something to the tune of $20 to $30 million. I said, ‘Wow that’s a lot of money!’” added DiCaprio.

Low was also known for hosting lavish parties and group vacations on his private jet to events like the World Cup in Brazil. DiCaprio recounted one particular trip to Australia to celebrate New Year's Eve, followed by a flight to Las Vegas to celebrate a second time in one day. Pras was present on some of these trips.

In May, a Bloomberg report said that DiCaprio was grilled in 2018 by the Federal Bureau of Investigation over his ties with Low. Then, the actor, as per the report, had admitted that he worked with Low and also had social interactions. He told a grand jury as per the report, "I was working for him … and that business also translates into being social. And so we saw each other more, and there was more interaction."

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