Jordan Belfort, the former stockbroker whose story inspired the Martin Scorsese-directed hit The Wolf of Wall Street, is suing the film’s financiers for fraud and breach of contract, and claiming $300m in compensation.

According to the Hollywood Reporter, Belfort’s legal action arises directly from the financial scandal surrounding Red Granite, the production company that put up the film’s $100m budget but was subsequently linked to a multimillion-dollar embezzlement in which huge sums were siphoned from 1MDB, a Malaysian state fund. Riza Aziz, Red Granite’s co-founder and stepson of former Malaysian prime minister Najib Razak, is currently under arrest in Malaysia on money laundering charges.

Belfort’s lawyer told the website: “Red Granite and its principals did not disclose to Mr Belfort that they were using funds obtained from engaging in racketeering and other criminal activity … Had Mr Belfort known those facts, he would have never agreed to enter into this contract.”

In effect, Belfort is attempting to cancel the contract with Red Granite, in which he signed over the rights to make a film from his book. Belfort’s legal complaint claims that the investigations into Red Granite are preventing Belfort from setting up a sequel or follow-up film. “Belfort is significantly damaged by Red Granite’s tainting of his book/story rights, coupled with Red Granite’s inability and/or refusal to exploit and maximise the rights acquired from Belfort … due to the highly publicised scandal.”

Leonardo DiCaprio as Jordan Belfort in Scorsese’s The Wolf of Wall Street. Photograph: Mary Cybulski/Paramount Pictures/AP

In response, Red Granite’s lawyer told the Hollywood Reporter: “Jordan Belfort’s lawsuit is nothing more than a desperate and supremely ironic attempt to get out from under an agreement that for the first time in his life made him rich and famous through lawful and legitimate means.”

Belfort’s memoir, The Wolf of Wall Street, was published in 2007 after Belfort served 22 months in jail for securities fraud relating to his activities in the 1980s and 90s with his brokerage firm Stratton Oakmont, and for which he was ordered to pay back more than $110m to his customers. A second memoir, Catching the Wolf of Wall Street, was published in 2009.

Scorsese’s film starred Leonardo DiCaprio as Belfort and was released in 2013. It was nominated for five Oscars and remains Scorsese’s most successful film at the global box office.