The U.S. Department of Justice, the Security and Exchange Committee, and the U.S Attorney’s Office for the Southern District of New York announced fraud charges against former Hollywood executive producer William Sadleir on Friday. Sadlier allegedly stole $1.7 million in funds meant for coronavirus relief and swindled $25 million from an investor.
Sadleir, the founder and former chairman of Los Angeles-based film production company Aviron Pictures, reportedly lied on applications to get $1.7 million in Paycheck Protection Program funds from the federal government, according to the Department of Justice.
Sadleir obtained PPP loans in April through three Aviron entities; each said to have 33 employees. However, the entities had been removed from Aviron months earlier, and all but a handful of employees had been let go in January.
The PPP funds were part of the Coronavirus Aid, Relief, and Economic Security Act to provide small businesses with loans to stay afloat during the COVID-19 pandemic. Sadleir used the coronavirus money to pay his and his wife’s American Express bills, and to make a $40,000 car payment.
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Sadleir, 66, also reportedly embezzled $25 million from a publicly traded investment fund. The SEC alleges that Sadleir created a fake company to mislead investment management company BlackRock Multi-Sector Income Trust. Sadleir also reportedly created a fake person named “Amanda Stevens” to defraud the company. – READ MORE
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