$25 Million Indie Film Scam

July 29th, 2011

And you were told nobody would invest in your indie film…

In mid-June, eighteen people were indicted for a $25 million indie film scam.  The boiler room scam consisted of telemarketers cold calling homes seeking investments in indie films, making false promises of 1,000% returns, movie credits, and uses of the investments.  Some of the “indie films” where never made and those that were often went straight to DVD or were made with a small budget.  For example, Cinamour Entertainment LLC collected $15 million to make “From Mexico With Love” from 450 of the “investors,” but the movie only cost $5 to produce.  The head of Burbank film company Q Media Assets, a former CIA agent, has already plead guilty to conspiracy, mail fraud, and tax charges.  A dozen defendants were named in the 45-count Cinamour indictment; nine defendants were charged in the 33-count Q Media indicment.

Press release form the U.S. Attorney’s Office.