Gary Howsam, 60, faces one count of bank fraud and six counts of false statements in a loan document, according to an indictment returned Tuesday by a grand jury in Los Angeles.
The former chief executive of Greenlight Film and Television, Howsam has helped produce dozens of films such as 2002's "Global Heresy" starring Peter O'Toole and 2001's "Ignition" with Bill Pullman. More recently, he was a producer on Showtime's "The Tudors."
After his arrest earlier this month, Howsam was placed on administrative leave from his current post as chief executive of Toronto-based production house Peace Arch Motion Pictures.
A message left early Wednesday with Howsam lawyer Donald Randolph was not immediately returned. Randolph has said his client "looks forward to an opportunity to clear his name in these matters."
The charges stem from loans Howsam obtained in 2000 to finance the production of the film "Going Back." Greenlight hired another company, Hilltop Entertainment, to help sell the movie overseas.
Prosecutors say Howsam and Hilltop co-owner Harel Goldstein doctored foreign distribution contracts to give the impression that companies in Italy, France, Germany, Spain and Japan had already paid for rights to distribute "Going Back."
Howsam then used those forged contracts to help secure a production loan of more than US$4.8 million from Comerica Bank, prosecutors say.
Each count against Howsam carries a maximum sentence of 30 years in prison, federal authorities said. He has been released on US$500,000 (ˆ338,181) bond and placed under house arrest.
Goldstein previously signed a plea deal with the government in which he agreed to provide information about his cooperation with Howsam in the alleged scam, authorities said.
Source: International Herald Tribune
