Former Seven Arts Entertainment CEO Peter Hoffman accused of masterminding a fraudulent film tax credit scheme in Louisiana.
The former CEO of the Seven Arts Entertainment is under scrutiny after facing yet another indictment for allegedly stealing money from the government.
According to Deadline, federal prosecutors filed a 22 count indictment against, Peter Hoffman, his former business partner and New Orleans-based actor and film producer, Michael Arata and Hoffman’s ex-wife, Susan Hoffman. Together they were able to obtain $1.13 million dollars in Louisiana tax credits without ever doing the work that they told Louisiana state officials they were going to do in return.
The trio is facing charges of conspiracy, wire and mail fraud, and accused of filing misleading and false information that claimed that a certain amount of money was spent, when allegedly that was not the case.
The whole problem revolves around 807 Esplande, an abandoned mansion that was to be renovated and developed into a state of the art post production building and residence for film crews.
Hoffman was previously indicted in felony tax fraud charges but was later acquitted.
Hoffman maintains that it is the government, not he, that is involved in a conspiracy, and that his current legal problems are rooted in the fact that he was acquitted in 1997 on felony tax fraud charges brought against him by the U.S. Attorney’s Office in Los Angeles.
Hoffman argues that the government sees him as an individual trying to take advantage of Louisiana tax credits.
Hoffman became famous for creating tax haves in order to avoid paying taxes in the United States. In the late 1980’s, Hoffman created a system called the “Dutch Sandwhich” where he developed a legal method of decreasing the amount a film has to pay in taxes by involving Dutch and Netherlands shell corporations. He used this method in such films as Total Recall, The Doors, Rambo III and Terminator 2: Judgment Day.
Hoffman went under investigation and was later acquitted.
What do you think of the case? Do you think Hoffman actually planned on trying to take money away from Louisiana? Or, do you think he was doing what any smart businessman should do in the film industry? Do you think the Federal government was right for stepping and trying to indict the film producer? Or, do you think Louisiana should have handled this on their own? Do you think state’s outside of California are open to tax fraud? What do you think? Share with us your thoughts in the comments below!
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