Hollywood Scam Costs Investors Millions

CBS has reported that the Justice Department has indicted six people in relation to two scams that prosecutors say cost 150 investors $5 million.  Investors were duped by high-profile actor namedropping and the promise of a safe investment.

Among the names promised to star in the film The Smuggler, John Cusack and Jaoquin Phoenix were incentives for the film's backers to trust in the film project.

The Federal Bureau of Investigation has declared the proposals were lies.

In an interview with CBS, Special Agent in Charge Tim Delaney said, "The people thought they were investing in the making of a movie. In reality they were funding the criminals' lifestyle."  The scammers cold-called investors throughout the United States in order to raise money for their fake film.  Rand Chortkoff, 64, had been arrested in the investigation.

According to IMDB, Chortkoff has produced obscure movies like Bluehill Avenue, Motocross Kids, and What Love Is.  He also co-founded the company Mutual Entertainment LLC (later renamed Film Shoot LLC) 

Others named in the case, according to USA Today are Samuel Braslau, 53; Stuart Rawitt, 47; Robert Matias, 50; Anthony David Millan, 37; and Mack Machen, 70.  If convicted of the crimes, the defendants can serve up to 20 years in prison.

The CBS report has said that a script for the movie was written, however nothing was put into production.  The group also attempted to raise money for another movie titled Beyond the Mat.