BEVERLY HILLS— The Viceroy L’Ermitage Beverly Hills has recently hit the market on Friday, July 3 after an investigation was conducted on the owner for a $2.5 million fraud.
Jho Low, a financier, had been in charge of the property after purchasing it and spending over $40 million on renovations. Low was prosecuted in 2016 after becoming a fugitive for embezzling from a Malaysian sovereign fund: 1Malaysia Development Berhad (1MDB.)
Prosecutors conducted a series of investigations over the course of years to track all of Low’s fraudulent activity.
The $2.5 million stolen was used to purchase several luxurious pieces from Van Gogh paintings to a see-through grand piano. The fraudulent money was also accused of allegedly helping go towards aiding the production company, Red Granite, who spent funds to make the infamous “Wolf of Wall Street” movie— based off the memoir of the stock-market scammer, Jordan Belfort.
The premium Beverly Hills hotel is the last of Low’s assets to be seized. Rooms run for about $600 a night and offer elite service. The hotel has 116 rooms with a roof-top pool and has brought in several A-lister clients.
Federal authorities in Los Angeles are hoping to auction the hotel off for at least $100 million. Michael M. Eidelman, a Chicago bankruptcy lawyer in charge of the auction, stated that this is a rare occurrence that is sure to gain traction:
“Luxury hotels in Beverly Hills don’t often come up for sale,” he said. “We have received inquiries from a number of different groups, and groups from a number of different countries.”