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LA Film Execs Ripped Off State of LA
PETER M. HOFFMAN, 63, and MICHAEL P. ARATA, 47, were charged with conspiracy and wire fraud in a six-count indictment for their roles in a $1.1M film tax credit scheme, announced United States Attorney Kenneth Allen Polite, Jr.
HOFFMAN, the CEO of Seven Arts Entertainment, Inc., and ARATA, a Louisiana attorney and businessman, used their companies to purchase property at 807 Esplanade, New Orleans, and falsely claimed expenditures to receive infrastructure tax credits from the State of Louisiana, totaling $1,132,480.80.
The indictment alleges that HOFFMAN and ARATA submitted false and misleading documents to auditors and the State of Louisiana to receive the tax credits, which were meant to incentivize film production in Louisiana.
“The State of Louisiana has provided significant incentives to attract film production, but this scheme exploits that system for personal gain,” stated U.S. Attorney Polite.
The indictment charges HOFFMAN and ARATA with six counts of conspiracy and wire fraud, and the United States Attorney’s Office, the FBI, and the Louisiana Office of the Inspector General are committed to protecting the economic interests of the United States and the State of Louisiana.
HOFFMAN, an attorney and executive with over 25 years of experience, owned and controlled numerous companies related to Seven Arts Entertainment, Inc., while ARATA owned and operated companies involved in the movie and entertainment industry.
The scheme targeted the Louisiana Motion Picture Incentive Act, which provided tax credits for qualified expenditures, including infrastructure costs. Businesses that applied for and received tax credits were entitled to sell them to local businesses and individuals, providing a significant source of cash for film projects.
Key Facts
- State: Louisiana
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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