Leonardo DiCaprio Foundation Comes Under Scrutiny

A complaint filed by the U.S. Department of Justice is putting a spotlight on actor Leonardo DiCaprio's charitable foundation, the Hollywood Reporter reports.

Filed with the U.S. District Court in Los Angeles in July, the complaint alleges that DiCaprio's friend Jho Low, a Malaysian businessman and a key figure in a $3 billion embezzlement case involving 1MDB, a Malaysian sovereign wealth fund, helped set up Red Granite Pictures, which financed DiCaprio's film The Wolf of Wall Street with $238 million siphoned from 1MDB. Low and Red Granite executive Joey McFarland also have raised funds for and made donations to the Leonardo DiCaprio Foundation. According to the DOJ complaint, funds diverted from 1MDB allegedly were used in 2013 to purchase artworks by Ed Ruscha and Mark Ryden for $1.1 million at a Christie's auction benefiting LDF. It is unclear whether DOJ, which declined to comment on the allegations, will try to secure the return of the funds from LDF.

At its latest gala on July 20, the same day as the DOJ filing, LDF reportedly raised $45 million for global conservation efforts, although the organization wouldn't provide documentation of that figure to the Hollywood Reporter. Set up as a donor-advised fund at the California Community Foundation, LDF isn't required to file itemized public disclosures about its revenues, expenditures, and disbursements. DiCaprio, LDF, and CCF all declined to answer the publication's questions with respect to the foundation's transparency. THR did note, however, that in its first decade of existence, LDF was a small private foundation run by DiCaprio's mother, Irmelin, and that in 2008, its last year as a foundation before dissolving its status and becoming a DAF, it distributed $1.6 million in grants. In a statement, CCF senior counsel Carol Bradford said the community foundation "strives to preserve the wishes of our many donors, which can often include anonymity or privacy in their giving choices."

Terry Tamminen, LDF's global CEO, said in a statement of his own that the fund has made grants totaling more than $30 million this year and that it is "an incredibly efficient, highly effective philanthropic organization that, through its relationship to the California Community Foundation, is supporting credible organizations that are carrying out some of the most important work on the planet."