The U.S. Securities and Exchange Commission Tuesday announced the resolution of a case involving a previously convicted director and others for allegedly defrauding investors who sank money into the making of a Gabriel Byrne comedy.
The SEC alleged that in 2016, Daniel Adams and music producer Michael Flanders induced the two investors to put $160,000 into “An L.A. Minute” through two companies, Spiderworx Media LLC and An L.A. Minute LLC, using lies and deception.
According to the complaint, Flanders sent one investor a fictitious wire transfer confirmation and signature page forged by Adams to create the false appearance that $200,000 had been raised. The complaint alleged that Adams and Flanders personally received $29,000 and $10,000, respectively, from the resulting investment.
The final judgment against Adams, entered in Los Angeles federal court, orders him to pay $50,562 plus prejudgment interest of $7,087 and a $50,562 civil penalty.
Flanders was ordered to pay $28,500 plus prejudgment interest of $4,354 and a $28,500 civil penalty, according to the SEC.
The final judgments against Spiderworx and L.A. Minute orders the companies to pay civil penalties of $60,000 and $100,000, respectively.
Adams pleaded guilty to tax fraud and larceny in 2012 in connection with his previous two films, and was ordered to pay nearly $4.4 million in restitution. He served a 21-month prison term and directed “An L.A. Minute” following his release, court papers show. It was released in 2018.
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