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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Movie flop likely a ruse for elaborate ponzi scheme

According to movie critics, the 2009 film “Not Forgotten” was anything but memorable. If you didn’t see it, or didn’t remember it, you are certainly not alone. The movie only ran in four theatres in the United States for seven weeks and grossed $54,000. Internationally, the movie actually made more money, with $88,000 in gross receipts.

However, Los Angeles County prosecutors see the movie as more than just a flop. They see it as the culmination of an elaborate ponzi scheme. According to an LA Times.com report, the director of the film and the film’s insurance director were behind the scheme that ultimately funded the movie. Prosecutors allege that the pair convinced 140 investors into putting money towards the movie, even though they likely knew that investors would lose their money. 

Many of the investors were elderly people who put forth their savings and annuities because they reportedly were promised double digit returns without any substantial risk; when this was not the case. In fact, one investor lost $400,000. Prosecutors believe that investors lost more than $21 million overall. The money reportedly was used to pay people who worked on the movie.

While the two accused have pled not guilty, they are expected to appear in court in November to formally answer the charges. Should they be found guilty, they face significant jail time on top of the obligation to provide restitution. However, the path for investors to get their money back will not be easy. It is these situations where an experienced securities fraud attorney may be necessary. 

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