I have a question for a friend that I'm hoping someone on here can answer. This friend, who is in the film business, partnered with a producer who managed to get funding for my friend's film. He even showed proof of funds. However, the POF did not have my friend's film LLC listed - only the producer's company.
After months and months of promises, excuses about delays because of "personal problems," followed by more promises, my friend has not seen a dime transferred into his movie fund account. No contracts have been signed. No one has met these "investors" or even know who they are, only a first name and that they live in L.A. somewhere.
But said producer swears up and down that he is interested in the project and that he has the money and wants to "move forward." Then he disappears for another week or a month before resurfacing to reassure my friend that he is still interested. Whenever my friend tries to corner him about the money, he gets radio silence.
So, can anyone tell me if this is some kind of scam, and if so, what's the reasoning behind it? I don't get it. Thanks for your help!
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It's a joke, you're friend is best to move on after wasting months. Real investors (regardless of what they invest in) want the money moved and progress made. So "months and months" (waiting) is one of those red flags. If the producer were real and had the money they also would've moved forward (my guess, and I've seen this happen, is the producer really does like the project and is trying to meet investors to get funding, so to keep your friend around the producer shows a POF).
Thanks for the insight - it's much appreciated!
There's no way to know. He has proof of funds (a screenshot showing the account), but there's no date on it, which leads me to believe the proof of funds could be from an earlier project.
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I would forget about them. If the money shows up at some point, great. But in the meantime, look for money elsewhere and focus the energy on something else be it a new project, developing the current project, etc. Good money will find a good project. And I hope this turns into good money, but even if the producer does show up, please have your friend review any contracts with a lawyer.
Good advice. Thanks!
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Your friend should reach out to an attorney. If his fund was used to raise money, the person who provided those funds will expect to see a film at some point. They may think your friend was involved in the fraud (since his film was used). So it's best to clear this up right away. The attorney may tell him to go to the police. The SEC is a whole agency that handles investment fraud, and California has officials that oversee investment as well. So . . . it's a good thing to be proactive about.
Thanks Nancy!
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No contracts have been signed. But you say your friend has "partnered" with a producer. And "no one" knows whi ghost investors are. It's been BS for months. The producer is the only known human, so investors can be assumed to be fake. If the "partnering" involves no contracts, I would move on at once. While not a scam per se based on the description, it's an age old case of a guy learning to produce on your time, and time is dime, so get out yesterday. If you want to test drive a Lamborghini, the dealer won't even give you an appointment until your bank faxes them a statement on your behalf. Somebody's POF handed to you means zilch.
Thanks Royce!