Producers Charged in $21 Million in Hollywood Ponzi Scheme
Two Hollywood producers have been arrested and are facing criminal charges resulting from an elaborate setup in which they received $21 million from investors to produce a film.
Michelle Kenen Seward and Dror Soref convinced investors to fund the production of a film entitled “Not Forgotten,” along with an unsecured investment. Both Seward and Doref convinced some investors to cash out annuities early or invest their life savings in a project that they were told would provide returns between 10 and 18 percent.
The scheme began in 2007 and ran through 2011. The film was completed and released in 2009. Following the completion of the film, Seward and Doref formed a new entity titled Windsor Pictures LLC, which other investors were told would be producing several more films. Investors were provided promissory notes and again told that they would receive between 10-18% returns on their investment. In 2011, Seward allegedly informed the victims of their Ponzi scheme that they would not be able to continue paying the same rate of return for those who invested in the film.
Investigators have allegedly found evidence that money that investor funds meant for Windsor Pictures was actually used to pay other investors of “Not Forgotten.” Neither Seward nor Doref are licensed to sell securities or provide investment advice.
Call a Los Angeles Ponzi Scheme Attorney Today
If you invested in “Not Forgotten,” Windsor Pictures LLC, or either Seward or Doref you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles Ponzi Scheme attorney today for a consultation regarding your rights.