The Oscar winner has begun the proceedings to handover a $3.2m Picasso painting

Leonardo DiCaprio and Australian model Miranda Kerr has been caught up in a Malaysian corruption scandal.

The Guardian reports that money stolen from a fund established by Malaysian Prime Minister Najib Razak, was used to purchase millions of dollars in jewels that are in Miranda Kerr’s possession.

Prosecutors claim that the jewellery was gifted to Kerr by Jho Low, a financier at the heart of the corruption.

The jewellery in question includes a $3.8m 8.88 carat diamond pendant from New York-based designer Lorraine Schwartz.

An Australian nongovernmental organisation, SABM, said it was not “alleging any wrongdoing by Miranda Kerr” but called for her to “hand over all jewels gifted to her”.

Over $4.5bn has allegedly been stolen from the 1MDB fund. The US justice department is also looking to seize assets including a Picasso painting in Leonardo DiCaprio’s possession and the rights to two Hollywood films — The Wolf of Wall Street and Dumb and Dumber To. Both films were produced by Red Granite, which was founded by Najib Razak’s stepson, Riza Aziz.

Kerr and DiCaprio have not been accused of any criminal activity. DiCaprio has begun the proceedings to handover the $3.2m artwork, which he accepted as gifts to raise funds in an auction for his environmental foundation.

SABM Australia wants Australian “police to investigate if any of the stolen funds have found their way to purchase Australian assets including property, works of art and jewellery”.

US authorities have accused Jho Low of laundering over $400m stolen from state fund 1MDB through an account in the United States, but have not charged him.

Low spent millions on jewellery for Ker, including Schwartz engraved necklaces, bracelets rings, one 11.72-carat heart-shaped diamond and a $1.9m matching diamond jewellery set.

Kerr separated from her ex-husband Orlando Bloom in 2013 and had dated Low in 2014. The model recently married Snap Inc co-founder Evan Spiegel.

The Malaysian Prime Minister has denied any wrongdoing.

“We simply will not allow the United States to be a place where corrupt individuals can expect to hide assets and lavishly spend money that should be used for the benefit of citizens of other nations,” Kenneth Blanco, acting assistant attorney general, said in a statement last week.

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