Three individuals, including a California film producer, have been charged in a superseding indictment related to a massive film tax credit scheme in Louisiana.
Peter M. Hoffman, 63, Michael P. Arata, 47, and Susan Hoffman, 69, were charged with 22 counts of fraudulent activities, including conspiracy, wire fraud, and tax evasion, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to the indictment, the trio exploited the Louisiana Motion Picture Incentive Act (LMPIA) to obtain tax credits worth $1.5 million, which were meant to incentivize the filming of movies and TV shows in the state. The scheme involved making false claims and misrepresenting expenses to obtain the tax credits.
The LMPIA allowed companies making motion pictures to receive tax credits calculated as a percentage of their qualified expenditures in Louisiana. However, the defendants allegedly fabricated infrastructure expenditures and submitted false claims to the state, resulting in the issuance of unauthorized tax credits.
The scheme also involved selling the tax credits to local businesses and individuals, who were unaware of the scam. The indictment adds four counts against Michael Arata for making false statements to a FBI Special Agent, further implicating the defendants in the scheme.
U.S. Attorney Polite emphasized that the indictment is merely a charge, and the defendants’ guilt must be proven beyond a reasonable doubt. The case is being investigated by the Federal Bureau of Investigation and the Louisiana Office of the Inspector General, and is being prosecuted by Assistant United States Attorneys G. Dall Kammer and Jordan Ginsberg.
The Superseding Indictment expands the time frame of the offense conduct to on or about February 3, 2010, and adds co-defendant Susan Hoffman, a California film producer who relocated to the New Orleans area. The indictment also reveals that Peter Hoffman and Susan Hoffman are married but have been legally separated since approximately 1998.
Through their respective companies, the defendants were partners in different movie-industry business ventures. The scheme has significant implications for the film industry in Louisiana, and highlights the need for greater transparency and accountability in the use of tax credits.
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Key Facts
- State: Louisiana
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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