Feds charge 2 in film tax credit case - FOX 8, WVUE, fox8live.com, weather, app, news, saints

Feds charge 2 in film tax credit case


BATON ROUGE, La. (AP) - The owners of two Baton Rouge film production companies are each charged by federal prosecutors with participating in a conspiracy that cost Louisiana taxpayers at least $1.2 million.

The Advocate reports that Daniel Garcia and Matthew Keith are each charged in a federal bill of information with allegedly working with unnamed others in a conspiracy to commit wire fraud.

Prosecutors say Garcia owned and operated DMG Holdings LLC and Louisiana Film Finishers LLC. Matthew Keith owned and operated Dirty District Entertainment LLC.

The case involves the Louisiana Motion Picture Industry Development Tax Credit Program. It is designed to encourage film and video production in the state. It provides a 30 percent state income tax credit on qualified expenditures for the production of films in Louisiana.

In the bill of information, prosecutors say the tax credits are "fully transferable" once issued by the state.

Keith allegedly worked with others, including a man identified as "D.G.," owner and operator of DMG Holdings and Louisiana Film Finishers. "D.G." is an apparent reference to Daniel Garcia based on the court filings.

Through "multiple transfers of funds among four separate companies," the charge filed against Keith alleges, "D.G. received approximately $1.2 million of tax credits to which he was not entitled."

Wire transfers to banks in Baton Rouge from banks in Gulfport, Miss., and Irving, Texas, were among evidence prosecutors cited against both Keith and "D.G.," according to Keith's charge.

Daniel Garcia, identified in his bill of information as owner of both DMG Holdings and Louisiana Film Finishers, allegedly used the same tactics to fraudulently obtain "$900,000 of tax credits to which he was not entitled."

Neither man's charge specifies whether the $900,000 in tax credits alleged to have been received by Garcia were in addition to the $1.2 million fraudulently received by "D.G." In both cases, the transactions occurred between June 10, 2009, and March 31, 2010.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


Powered by Frankly