A trove of blue-chip artworks—once owned by fugitive financier Jho Low and Wolf of Wall Street producer Joey McFarland—has surfaced in an unlikely venue: an online auction run by the U.S. Marshals Service. Pablo Picasso’s Tête de taureau et broc (1939), two Jean-Michel Basquiat works (Self Portrait and Red Man One, both 1982), and Diane Arbus’s Child with a Toy Hand Grenade (1962) are being sold to recoup funds stolen in Malaysia’s sprawling 1MDB corruption case. The catch? The bare-bones government auction platform might scare off buyers in a jittery market.
The works were surrendered to the U.S. Department of Justice by actor Leonardo DiCaprio and McFarland after investigators traced them to Low, the alleged mastermind behind the 1MDB embezzlement scheme. Low, now an Interpol fugitive, used siphoned funds to buy the Picasso for $3.28 million in 2014, gifting it to DiCaprio with a handwritten birthday note signed “TKL” (his initials). Basquiat’s Red Man One, purchased for $9.4 million from Helly Nahmad Gallery in 2012 with stolen bond proceeds, later sold for just $3.5 million at Sotheby’s in 2009—a fraction of its government-seizure price tag.
Texas-based Gaston & Sheehan, the auction house handling the sale, set eyebrow-raising starting bids: $850,000 for the Basquiat self-portrait, $2.975 million for Red Man One, and a mere $4,400 for the Arbus photograph. Yet the clunky auction interface and the spectre of Low’s involvement have advisors sceptical. “Clients would think it’s a scam,” said art advisor Arushi Kapoor, noting the site’s amateurish design. Others see opportunity: “Savvy buyers could capitalise,” countered advisor Dane Jensen.
The sale echoes past 1MDB-linked auctions. Andy Warhol’s Round Jackie (gifted to Swizz Beatz) sold for $1.04 million in 2021—slightly below Low’s 2013 purchase price. Rothko’s Untitled (Yellow and Blue) fetched 30% less at Sotheby’s Hong Kong last year. “Provenance issues can suppress prices, but auctions defy logic,” noted Jane Levine, a former Sotheby’s executive. Proceeds will aid Malaysian victims of the fraud, per DOJ policy.
Beyond the bargain-hunting potential, the auction underscores art’s role in global money laundering—and the U.S. government’s awkward pivot to art dealer. As one advisor quipped, “Who knew the Marshals Service had a side hustle in Art?” Bidding closes September 4.
— Additional reporting by Justice Department filings and auction archives