18 accused of defrauding indie-film investors
Eighteen people have been charged with fraud, money laundering and conspiracy in a scheme that involved cold-calling investors to bankroll indie-film productions, the FBI and U.S attorney’s office said Friday.
The indictments allege that since 2004, Burbank-based Q Media Assets and Sherman Oaks-based Cinamour Entertainment LLC solicited $25 million from investors for a handful of films, some of which were never made or went straight to DVD.
FBI Special Agent Steven Goldman said the companies used high-pressure sales tactics that misrepresented material facts.
The indictment alleges that the movie companies and telemarketers used only about a third of investors’ funds to produce and market the films and pocketed the rest. “That’s what makes the case criminal,†Goldman said.
In 2009, Cinamour released “From Mexico With Love,†starring Mexican actor Kuno Becker. The film — for which Cinamour collected $15 million from 450 investors — had a budget of $5 million and grossed $550,000, according to the Internet Movie Database.
Investigators say Cinamour raised $2.7 million for another film that was never made.
Q Media raised $9 million for two films; one flopped, making only $700,000, and the other went straight to DVD.
The 45-count indictment against Cinamour charges 12 defendants. The 33-count indictment against Q Media charged an additional five people. The defendants are all from California or Florida.
An 18th person was charged separate from the two indictments.
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