"‘Hollywood East’ financier faces fraud charges" by Thomas Farragher and Scott Allen, Globe Staff | June 29, 2010
The once and fleeting financier of the Plymouth Rock Studios project was indicted yesterday on dozens of fraud charges, including an allegation that he swindled the movie studio backers out of their multimillion-dollar deposit.
The indictment of Michael F. Burgess was announced yesterday by the US attorney’s office for the Middle District of Florida after an investigation by the US Secret Service, which is charged with protecting the nation’s financial infrastructure, as well as with guarding national leaders.
Plymouth Rock Studios, or PRS, “gave a collateral deposit payment of $3.5 million,’’ Steve Cole, the US attorney’s spokesman, said in a statement. “When Burgess failed to secure the loan, PRS asked for its money back. Burgess did not return the funds.’’
Burgess, the manager and treasurer of Prosperity International LLC of Orlando, is facing 42 counts of wire fraud and conspiracy to commit wire fraud....
Burgess is also accused of defrauding Socha International Holdings in connection with Prosperity International’s efforts to obtain a $10 million line of credit for the company. According to the US attorney’s office, Socha gave Burgess $620,000 to set up the account, which never materialized. Burgess gave numerous excuses about why the line of credit had been delayed, but ultimately repaid Socha only $200,000.
Socha International could not be reached for comment.
According to the indictment, Burgess had at least one unnamed coconspirator. He also required his clients to sign a confidentiality agreement that banned them from talking to banks or law firms that were to be involved in the financing.
Burgess, who was arrested yesterday, has moved to Georgia, where he was scheduled to appear in US District Court in Atlanta.
According to the indictment, Burgess has been notified that the government intends to seize assets that can be linked to his alleged offenses, including money in a Swiss bank account.
UNREAL!
So THAT is where the TAX LOOT ends up, huh?
Also see: That's a Wrap, Plymouth!
