The US Marshals Service has launched an online auction featuring four valuable artworks by renowned artists Pablo Picasso, Jean-Michel Basquiat, and Diane Arbus, all seized by federal authorities as part of the massive 1Malaysia Development Berhad (1MDB) financial scandal that rocked Malaysia's government.

A Texas-based auction house called Gaston and Sheehan, operating out of Pflugerville, has been awarded the government contract to manage the sale of these significant pieces. The collection includes two works by Basquiat - "Self Portrait" from 1982 and "Red Man One" also from 1982 - alongside Picasso's "Tête de taureau et broc" created in 1939, and Diane Arbus's photograph "Child with a Toy Hand Grenade."

The digital auction launched on July 16 and will run through September 4, with an unusual benefit for potential buyers: no additional premium fees will be charged on winning bids. According to industry publication ARTnews, this fee structure is uncommon in the art auction world.

Art industry professionals and consultants who spoke with ARTnews described the pieces as exceptional quality works, noting that the opening bid amounts appear remarkably low compared to historical market values and data from similar sales. However, the basic appearance and functionality of the auction website, combined with the controversial criminal origins tied to an internationally wanted fugitive, could potentially discourage serious collectors in what is already a challenging market environment for fine art.

Dane Jensen, an art consultant, acknowledged that while the auction venue may lack the prestige typically associated with high-end art sales, it could represent a potentially lucrative opportunity for savvy collectors willing to overlook the unconventional circumstances surrounding the sale.

Another art consultant, Arushi Kapoor, expressed significant skepticism about the platform's credibility in her interview with ARTnews. She explained that her wealthy clientele would likely avoid participating in an auction hosted on such a poorly designed website. Kapoor added that if someone had recommended the site to her without context, she might have suspected it was involved in fraudulent activity based on its unprofessional appearance.

According to Justice Department records from July 2020, Christopher Joey McFarland voluntarily surrendered the Basquiat "Self Portrait" to federal authorities. McFarland served as co-founder of Red Granite Pictures alongside Riza Shahriz Abdul Aziz, who is the stepson of former Malaysian Prime Minister Datuk Seri Najib Razak. The same business partnership between McFarland and Abdul Aziz was responsible for financing the 2013 Hollywood blockbuster "The Wolf of Wall Street."

The remaining three artworks in the auction have an even more complex provenance. Malaysian financier Low Taek Jho, commonly known as Jho Low and currently a fugitive from international justice, purchased these pieces between 2012 and 2014. Low subsequently presented all three works as gifts to Hollywood actor and noted art enthusiast Leonardo DiCaprio, who played both starring and producing roles in "The Wolf of Wall Street."

The 1MDB scandal represents one of the largest financial fraud cases in modern history, involving the alleged theft of billions of dollars from Malaysia's sovereign wealth fund. The stolen money was allegedly used to purchase luxury real estate, yachts, jewelry, and fine art, as well as to finance Hollywood films. DiCaprio later voluntarily returned the artworks to authorities as part of the ongoing federal investigation.

The unusual nature of this auction highlights the complex intersection of international financial crime, Hollywood glamour, and the high-end art market. While the artworks themselves are legitimate pieces by celebrated artists, their path to auction through criminal forfeiture proceedings has created an unprecedented situation in the art world.

The basic website design contrasts sharply with the typical presentation standards of major auction houses like Sotheby's, Christie's, or Phillips, which invest heavily in sophisticated online platforms and marketing materials for works of this caliber. This disparity has raised questions among industry professionals about whether the unconventional presentation might suppress final sale prices, despite the absence of buyer's premiums.

The auction represents the US government's ongoing efforts to recover assets purchased with funds allegedly stolen from the Malaysian people through the 1MDB scheme. Proceeds from the sale will likely be directed toward the Justice Department's asset forfeiture program, which aims to return recovered funds to victims of financial crimes.