Toronto producer arrested in case of film financing fraud
Last Updated: Friday, November 9, 2007 | 4:22 PM ET
CBC News
A Toronto film producer has been arrested in Los Angeles over accusations he duped financiers into giving him money to back films by showing them bogus contracts.
Gary Howsam, 56, a producer involved in projects such as 2002's Heresy and 2001's Ignition, was taken into custody Monday at Los Angeles International Airport, according to FBI spokeswoman Laura Eimiller.
Howsam has been charged with bank fraud and accused of using false contracts to secure bank loans, according to the FBI.
According to an FBI affidavit, the case stems from loans Howsam secured from Comerica Bank in 1999 and 2000 to finance the production of six films, including Going Back, a film about marines returning from Vietnam.
Howsam, former chief executive of Greenlight Film and Television which produced Going Back, was released on $500,000 US bond and place under house arrest in Los Angeles.
He has been put on administrative leave as chief executive of Peace Arch Entertainment Group Inc. in Toronto while awaiting the resolution of his case.
Harel Goldstein of Hilltop Entertainment, a co-producer of Going Back, co-operated with the FBI in its investigation of Howsam and another man.
The FBI affadavit says Howsam doctored foreign distribution contracts to give the impression that companies in Italy, France, Germany, Spain and Japan had paid for rights to distribute Going Back.
He then used those bogus contracts as collateral for Greenlight's loans from Comerica, authorities said.
Comerica has discovered some of the contracts were faked and it would not be able collect any money promised in the agreements.
None of the allegations has been proven in court.
Howsam's lawyer Donald Randolph said his client "looks forward to an opportunity to clear his name."
With files from the Associated PressShare Tools
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