So... dude just got arrested for a Ponzi scheme involving Netflix and HBO... to the tune of $690mil! HOLY COW!
"According to Verrastro, not only did Horwitz go to investors with fabricated distribution agreements (some purportedly signed by executives at Netflix and HBO), but 1inMM's rights to a library of movies were fraudulent in the first place."
So, I ask you, my Stage 32 Hive Mind, how would YOU go about confirming the legitimacy of a distribution agreement?
https://www.hollywoodreporter.com/thr-esq/actor-arrested-in-alleged-690m...
This is just crazy! Instead of putting that mind into something good, he gets involved in this mess.
OMG! This is crazy...
Yep, yep... agreed. Mariannjely Marval Yeah, all that effort, and what you're building isn't even real?
And it's stories like this that ward off novices because they are afraid of that one "what if". Thus why I wanted to unpack it a bit. I feel like this is a great example of "reach out to your trusted network and ask before you sign". But what do y'all think?
It's fine. Horvitz has sold the Film Rights to pay off his creditors. - Not actually , but would make a great movie !
Well, he bilked investors. If I were a potential investor, I would ask for copies of the distribution agreements. Then I would contact legal at the respective companies for confirmation.
I would also trawl google to see if I could find any verification of the various purported deals (distribution deals are usually reported by Variety etc.). Then I would do a background search on the guy, and there Mr. Google is a great friend.
Next I would search my network for anyone who might have had dealings with him and ask for feedback.
Anybody got the phone numbers of the investors - I've got this great deal!
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David Lake :D
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this caught my eye...my project has grabbed the interest of some international distro companies and theyre looking to do a co-production deal. Im new to this industry so when I saw your post it made me worried...due diligence is so important eh?
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I get to know who people are before I get in business with them, and I expand the scope of my work only to the degree that my community can support that growth. I'm not looking for a $200 million movie, right away. I'm looking to put on successful shows, and when people want a piece of my success I exercise scrutiny.
When I make a $200 million movie, I'll either be working with people who competed for my business or people I know and trust personally. That's the only way a person winds up doing business on that scale in the first place. Short cuts, in this industry, hurt your sustainability.