A Hollywood producer bilked movie and enterprise companions out of $12 million, claiming he was utilizing their cash to work on motion pictures or different legit enterprises, however as an alternative utilizing it to purchase costly vehicles, homes and even a surrogate, prosecutors alleged Wednesday.
David Brown labored for years as a producer of indie Hollywood productions, burnishing his credentials as a producer of the movie competition darling “The Fallout,” starring Jenna Ortega, which received the narrative characteristic competitors at South by Southwest, in addition to of “The Apprentice,” the film in regards to the rise of Donald Trump.
However at the same time as Brown gave the impression to be placing collectively a profitable producing profession, federal prosecutors stated, he was additionally defrauding quite a few victims by siphoning funds that belonged to manufacturing firms and transferring the cash to himself or companies he managed.
In an electronic mail to The Occasions for a 2023 article that documented the path of fraud allegations that dogged him, Brown stated he had made errors prior to now, however denied defrauding anybody.
“I needed to work actually arduous to get the place I’m right now,” he stated. “I needed to overcome so much. I needed to struggle for my place. … I’m not some unhealthy man.”
Brown was indicted Wednesday on 21 counts of wire fraud, transactional cash laundering and aggravated id theft. He had his first courtroom look in South Carolina.
Prosecutors alleged that Brown, who lived in Sherman Oaks, used a collection of techniques to defraud his enterprise companions out of their cash.
He satisfied one sufferer to place cash into an organization referred to as Movie Holdings Capital, which was imagined to finance movie initiatives. However Brown as an alternative took the individual’s cash and used it for “sustaining his way of life and repaying prior victims … in a Ponzi-like scheme,” prosecutors stated.
In different cases, Brown used manufacturing firm funds to pay Hollywood Covid Testing, an organization he managed, “for providers by no means rendered or already paid for,” prosecutors stated.
He additionally advised one sufferer that they may pool cash and make a enterprise flipping homes. He contributed little to the enterprise and used a few of the sufferer’s cash for different functions, prosecutors stated.
Brown made certain to hide his checkered previous from potential enterprise companions. He tried to not allow them to know in regards to the 2023 article in The Occasions, or in regards to the intensive litigation filed in opposition to him, in keeping with federal prosecutors.
The 2023 article — for which The Occasions interviewed greater than 30 individuals — detailed a collection of allegations in opposition to Brown from his movie companions, together with that he cast Kevin Spacey’s signature and advised movie traders that Spacey had agreed to behave as a most important character in a movie for simply $100,000. However Spacey had not signed on to the movie and didn’t even know what it was, his former supervisor advised The Occasions. Brown denied forging Spacey’s signature.
Brown used the cash he stole from his victims to make extravagant purchases, prosecutors stated.
He purchased a 2025 Mercedes-Benz G-Wagon and three Teslas, together with a 2024 Cybertruck, prosecutors alleged. He used the funds to make mortgage funds on his dwelling and to rework the house and used about $100,000 to put in a pool, prosecutors stated.
He even purchased a home for his mom utilizing the ill-gotten money, prosecutors alleged.
On high of that, Brown additionally allegedly used stolen cash to pay $70,000 for surrogacy, personal faculty tuition for his baby and different providers.
In all, he stole greater than $12 million from his victims, prosecutors alleged.
Brown is in federal custody in South Carolina and can enter a plea to the fees at his arraignment within the coming weeks, in keeping with the U.S. lawyer’s workplace for the Central District of California.
