Accused Billed for Fake COVID Tests, Misappropriated Film Funds, and Laundered Money
Federal agents in South Carolina have arrested a former Los Angeles film producer accused of running a $12 million fraud scheme that prosecutors say relied on fake COVID-19 testing charges, false invoices, and the misuse of film production funds, according to a Department of Justice press release.
David Raymond Brown, 39, a onetime Sherman Oaks resident now living in West Columbia, was taken into custody Friday on a 21-count indictment returned Aug. 20 by a Los Angeles federal grand jury. He faces nine counts of wire fraud, 10 counts of money laundering, and two counts of aggravated identity theft.
Brown’s credits include serving as a producer on filmmaker Ali Abbasi’s The Apprentice and the Jenna Ortega drama The Fallout, as reported by Deadline. He also operated his own production outfit, The Screen Company, and held roles as a production manager and accountant on independent films, prosecutors said.
According to the indictment, Brown diverted millions of dollars from film projects into accounts he controlled. To create the appearance of legitimate expenses, he billed production companies through a Studio City business he established, Hollywood Covid Testing LLC, for screening services that never took place or had already been paid for.
Investigators also allege Brown defrauded two private investors with promises of real estate ventures and film financing through another entity he controlled, Film Holdings Capital. Instead, authorities say, he used the money for personal expenses, including luxury cars, a home for his mother, surrogacy services, private school tuition, and nearly $100,000 for a swimming pool. Nearly $1 million went toward a film project about the 1974 kidnapping of Patricia Hearst.
To bolster his credibility, Brown allegedly passed off another producer’s IMDb profile as his own and concealed lawsuits and news reports documenting previous fraud accusations. Prosecutors further allege he withheld health insurance payments from employees while failing to maintain their coverage.
Losses to victims exceed $12 million, officials said. If convicted on all counts, Brown faces up to 20 years in prison for each wire fraud charge, 10 years for each money laundering count, and a mandatory two-year consecutive term for each identity theft count.
The FBI and IRS Criminal Investigation are leading the case. Assistant U.S. Attorneys Alexander B. Schwab, Joshua O. Mausner, and Sarah E. Spielberger are prosecuting.
