Hollywood producer stole from films, ran ‘ponzi-like scheme,’ feds say

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A movie producer in Hollywood is accused by authorities of defrauding his film and business associates out of approximately $12 million. The producer allegedly deceived them into believing the funds were being invested in films or legitimate businesses, when in reality he reportedly spent it on luxury cars, homes, and even a surrogate mother service.

For several years, David Brown honed his skills as a producer in independent Hollywood productions, notably contributing to the critically acclaimed film “The Fallout,” featuring Jenna Ortega, which claimed the top prize in the narrative feature competition at South by Southwest. Additionally, he was instrumental in producing “The Apprentice,” a movie chronicling the rise of Donald Trump.

However, while it appeared that Brown was thriving in his film-making career, authorities alleged that he was simultaneously swindling multiple victims. This was achieved by misappropriating funds that rightfully belonged to production firms and then redirecting these funds to accounts under his control or companies he managed.

While Brown looked like he had a great career in movies, the government claimed he was secretly stealing money from various victims by taking funds meant for production companies and giving it to himself or businesses he owned.

In an email to The Times for a 2023 article about the series of fraud accusations against him, Brown admitted to past errors, but insisted that he never defrauded anyone.

To reach the point I’m at now, I’ve had to put in a tremendous amount of effort and grit,” I shared. “There were numerous obstacles to surmount and battles to win. But let me be clear: I’m no villain in this story.

On Wednesday, Brown faced charges involving 21 counts of fraudulent activities including wire fraud, money laundering related to transactions, and aggravated identity theft. His initial court hearing took place in South Carolina.

It was claimed by prosecutors that Brown, a resident of Sherman Oaks, employed various deceptive methods to swindle his business associates out of their funds.

In simpler terms, he deceived one individual into investing their money into a company named Film Holdings Capital, claiming it would fund film productions. However, rather than using the funds for its intended purpose, Brown utilized the money to sustain his personal lifestyle and repay earlier victims in a manner reminiscent of a Ponzi scheme, as per the prosecutors’ statements.

In certain cases, Brown is alleged to have utilized the funds from his production company to compensate Hollywood Covid Testing, a business he owned, for services that were neither provided nor previously unpaid, according to the prosecution.

In addition, he suggested to one of the victims that they could combine their funds to start a venture of buying and selling properties. However, he only minimally participated in the business and reportedly utilized some of the victim’s money for different expenditures, as stated by the prosecution.

Brown was careful to hide his controversial history from possible business associates. He went to great lengths to prevent them from learning about the 2023 article published in The Times, as well as the numerous lawsuits brought against him, allegedly by federal prosecutors.

2023’s article, based on interviews with over 30 individuals by The Times, outlines a string of accusations against Brown by his movie collaborators. They claimed that he falsified Kevin Spacey’s signature and misled film investors by asserting that Spacey had agreed to play a leading role in a film for only $100,000. However, as per Spacey’s former manager, he had neither agreed to the movie nor was aware of it. Brown refuted the allegation of forging Spacey’s signature.

Brown used the money he stole from his victims to make extravagant purchases, prosecutors said.

The defendant is reported to have purchased a 2025 Mercedes-Benz G-Wagon, as well as three Tesla vehicles – among them a 2024 Cybertruck. According to prosecutors, these acquisitions were funded by the individual, who in turn utilized those funds for mortgage payments on his residence and home renovations. Approximately $100,000 of the proceeds were allocated towards installing a swimming pool, as per the statements made by prosecutors.

He even bought a house for his mother using the ill-gotten cash, prosecutors alleged.

Moreover, it’s claimed that Brown additionally spent around $70,000, which was reportedly illegitimately obtained funds, on expenses such as surrogacy fees, private school tuition for his kid, and various other services.

In all, he stole more than $12 million from his victims, prosecutors alleged.

According to reports from the U.S. Attorney’s Office for the Central District of California, Brown is currently being held by federal authorities in South Carolina and will be entering a plea to the charges at his upcoming arraignment within the next few weeks.

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2025-08-28 04:01