Movie director Daniel Adams and music producer Michael Flanders, and companies under their control have been charged with fraud by the Securities and Exchange Commission (SEC). The allegations of fraud are associated with the production of the film: An L.A. Minute.
Adams has been involved with a variety of movies including the Golden Boys (2008), The Lightkeepers (2009), and more.
Adams previously pleaded guilty to tax fraud and larceny in 2012, was ordered to pay nearly $4.4 million in restitution to the State of Massachusetts. He served a 21 month prison term.
The SEC’s complaint alleges that, in 2016, Adams and Flanders induced the two individuals to invest $160,000 through two companies, Spiderworx Media LLC and An L.A. Minute LLC, using a “pattern of lies and deception.”
The allegations of misrepresentations surround fabricated emails Adams had prepared containing a fictitious wire transfer confirmation and a forged signature page, to create the false appearance that $200,000 had been raised from another investor. The complaint alleges that Adams and Flanders personally received $29,000 and $10,000, respectively, from the $100,000 investment.
The complaint seeks injunctive relief, including a conduct-based injunction prohibiting Adams from participating in any unregistered securities transactions, disgorgement of ill-gotten gains plus prejudgment interest by Adams and Flanders, and penalties against all the defendants.