Saturday, December 10, 2011

Filmmaker gets caught for Corporate welfare Fraud

Giving out corporate welfare to "encourage" film makers seems particularly prone to fraud and abuse. The case below is from Mass. HERE is a recent case in Louisiana.

Adams, a 50-year-old Barnstable resident and former political operative, was hauled into Boston Municipal Court yesterday on larceny charges for allegedly inflating expenses on his 2008 made-in-Massachusetts film “The Golden Boys,” and 2009’s set-on-the-Cape romantic comedy “The Lightkeepers,” which starred Dreyfuss and Blythe Danner.


In 2009, he allegedly puffed up his expense reports to get a $4.2 million tax credit for “The Lightkeepers,” claiming to have spent more than $17 million in eligible expenses, including a $2.5 million salary for Dreyfuss. But prosecutors say Dreyfuss was paid just $400,000 and that many of the expenses were bogus.

In all, Attorney General Martha Coakley’s office said Adams fraudulently received more than $4 million in tax credits, which were then sold off to other unnamed companies. State law allows filmmakers to receive tax credits of up to 25 percent of production costs.