Yesterday the State of Florida filed a lawsuit against the leaders of the digital domain to ten million U.S. dollars back into the incentives that taxpayer-funded claim and "fraud", obtained from the condition.
"It was the script the conditions for a big-budget Hollywood. Greed, corruption and special effects and suggested willing audiences star to suspend the faith," said the lawsuit, "In the real world, it is n 'there was no Hollywood happy ending War. not the hero save the day. Did not defeat the villain. Instead, the story of the taxpayers cheated of Florida ended more than 80 million dollars. "
Brought by the state of Florida and its Department of Economic Opportunity, the suit ( 71 pages PDF download complaint ) lists 23 different parties as defendants. The former CEO of Digital Domain: Were fraud charges against the two most dangerous brought John Textor and the company's President and Chief Financial Officer Jonathan F. Teaford. The rest of the defendants in the trial, former state Rep. Kevin Ambler includes; secured lenders undertake civil for the company Falcon Mezzanine Partners, Member of the Board of Directors of the digital domain, reports audit companies and various investment to the company on charges of conspiracy to commit fraud, gross negligence, complicity in the fraud and interference tort consent Grant Funds .
Confirmed prosecutor that the pre-Textor Digital Domain in California was "a Ponzi scheme de facto" that constantly replace afloat by borrowing on old debt with new debt, and "how all the tricks Ponzi remained, the disappearance of the digital domain was Textor security strategy, "according to the state, to integrate the digital area of California debt with new Florida Digital Domain, which are funded by taxpayers' money was.:
Digital Domain began the fraud on the state in earnest in 2007. Recently, the California Digital Domain heavily in debt, including Falcon Mezzanine Partners, the main lender. Through a series of loans and debt restructuring, Falcon came various notes and stock and notes, which allowed him, in the case of the standard start work again in 2009 and to hold appeal to millions of dollars of personal guarantees. Prior to 2009, California Digital Domain hatched a new plan to get rid of debt: 1) the formation of a new company (Florida Digital Domain) without the debt on their books, 2) use the credentials of the Digital Domain in California with the promise of good paying jobs to Florida to give as security for money to Florida Digital Domain, and 3) the use of the grant to save a part of the California Digital Domain (which, in June 2009, and was on the verge of default with Falcon) and 4) the integration of digital with Digital Domain Doman California, Florida, the business model does not hold.
Is this not the right man for this plan - and it was John Textor, a native of the state of Florida can Hollywood mogul who had bought (together with investors, other prominent) participation in the digital domain, California wannabe - called "Project Bee "In 2006, he and others inside. Displays a digital domain company and a start-up Florida and has links no debt, which was with the digital domain powers California for the management and visual effects. Textor promised including script, Digital Domain bring that thousands of well-paying jobs in the state of Florida during the devastating recession, but there was only one catch. It takes millions of dollars in government subsidies was not the first Textor. Never said that the State, once I got Florida Digital Domain grant money will be required to pay the Falcon. He and others aware of this information in the digital domain Florida resources.
Florida has a system to ensure that the applicant for a grant, where the state of Florida to drop Digital Domain, the country how to prevent this. First, the system is operating. The proposal was rejected, Florida Digital Domain for a grant of 20 million dollars from the Foundation of Florida, a partner public and private sectors of the State responsible for examining the potential economic development projects the state. To the chagrin of Textor and others attempt to make the fraud Florida Digital Domain as a start-up enterprise Florida studied the California Digital domain to use the currency of a financial Textor reputation. In accordance with the usual procedures and projects Florida - due diligence and evaluation of regulatory requirements for economic incentives - found "the financial statements of the company" very low ", and drew particular attention to fears of" profitability as a result of equity and debt financing and sales forecasts and cash position and executive compensation, and the recent conflict "with digital Doman California (the number of" risk factors "that were identified as part of the shares to the public in 2007.) found Enterprise Florida, that the business model is healthy digital domain can recover the percentage legally required five do not meet. Consequently, it has refused Enterprise Florida, recommend funding 20 million for the project.
He said the state that after the release of funds, Textor pressure illegally and then Florida Governor Charlie Crist. Free, but the numbers do not include the most important right enjoyed by the defendants. According to the prosecutor, Bill Shearer, he is no evidence that Crist and other great personalities pay for these projects, or that politics played a role in the study.
John Textor speaking in 2011.
Textor says that the process is politically motivated. In a statement to Cartoon Brew, he reveals that the law firm that had the state not previously agreed to represent him in the case. Here is the full text of the statement Textor:
This lawsuit reads like fiction politically motivated. Built the studio, hiring workers, and the state audit has confirmed that all the conditions for DMMD grants. After the bankruptcy, the Inspector General conducted for Governor Scott thorough investigation and found no wrong one of those, in the granting of the subsidy involved by me or. Close now months before the elections, and I am surprised, Governor, a law firm that decided only recently to me to rent the same questions. When my actions as lawyers, and they think that the public is not aware of the facts. Get hit me several times, and confidential information and agreed to represent me in my efforts to the actions of hedge fund donors, the predatory economic development project for investigating stop the execution of a stock. The politics of this study can not change the facts. Law firm in the state knowingly violated their ethical obligations as lawyers.
I support all the functions of the review of initiatives DMMD. We have two different programs to meet the promise of work ... Studio for 500 jobs and college built to inspire thousands of jobs. The studio is safe, but it was a successful college until after DMMD bankruptcy. Maybe this lawsuit will force is to explain his actions on closing the college in South Florida, the governor - the largest part of the work we have.
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