Busted: $25 Million Indie Film Scam

Thursday, July 07, 2011
Nikki Finke, deadline.com
Submitted by: Kevin J. Ziruolo

[deadline.com] Federal Authorities reported in June that FBI and IRS agents arrested and charged 18 people who now face fraud and money laundering charges relating to a telemarketing "boiler room" scam that solicited $25 million in so-called investments in indie films with false promises of up to 1,000% returns.

[excerpt] A former CIA agent who ran a Burbank movie company called Q Media Assets has already pleaded guilty to conspiracy, mail fraud, and tax charges in relation to the fraudulent boiler rooms. Also fingered are the activities of Cinamour Entertainment LLC, which allegedly bilked investors who put money into independent motion pictures called From Mexico With Love and Red Water: 2012. It follows the May 2009 apparent suicide of Glen Hartford, the 45-year-old chairman-CEO-founder of Cinamour Entertainment.

The scam was perpetrated in Southern California and Florida.

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Posted by Editor on 07/07/11 at 08:39 AM • (0) Comments

Tags: fraud, money laundering, hollywood, film,