Harvey Weinstein Committed SEC Fraud In Hiding $55,000,000 In Debt During Failed Weinstein Company Agreement To Sell

March 9. 2018

Fallen movie producer and rapist, Harvey Weinstein, 65, used his Barack Obama administration ties to broker the sale of the corporation he co-owns, The Weinstein Company. Weinstein made a deal with Maria Contreras-Sweet, the one time head of the U.S. Small Business Association, under his friend and enabler, former President Barack Obama. The deal stipulated the company and its copyrighted films would be sold for $275 million and the buyer would also assume an additional $225 million in debt.

The deal fell through when New York Attorney General, Eric Schneiderman, filed a civil rights lawsuit against Weinstein, in a maneuver to block the sale, ensuring his victims would be paid compensation for the crimes the movie producer committed against them. The deal then faced another set back, when it was discovered Weinstein hid an additional $55,000,000 in debt from the buyer, which is illegal under SEC rules.

Not only were the buyers about to purchase films whose financial worth has been greatly exaggerated, in the true Hollywood fashion of committing fraud (another SEC violation), they were also taking on $55,000,000 in hidden debt (on top of the $225,000,000 in disclosed debt). The company simply is not worth what Weinstein and company are claiming.

Hollywood constantly lies about the net worth of companies and people, which is a crime in the business world and under federal law. Most of Hollywood is uneducated and unbalanced. They are severely out of touch with reality. They make things up out of thin air, including financial figures, then state it as fact. It's crazy. Only con artists and crazy people so such things.

Take for example cars, which all have a set value and depreciation rate. Say the preset, nationally accepted value of a 1985 non-sports car is $2,000. Hollywood will sip some crazy juice and tell you the car is worth $10,000,000, knowing full well that is an outrageous exaggeration of the car's value. They do the same thing with films. They try to peddle flopped films as box office gold, knowing full well it will not generate the future revenues they claim it's worth. If a film doesn't even bring in $20,000 per year in licensing fees and sales, how is it worth millions of dollars all of a sudden in a business deal.

Weinstein Company is not one of the true major film studios. Why is it carrying such a massive debt load ($280,000,000). A mid-sized film company should not be carrying that much debt. Something is wrong. It appears The Weinstein Company is also carrying millions of dollars in Harvey Weinstein's personal debts, via bills he ran up and fraudulently placed with the film corporation. It is highly unprofessional to fraudulent place personal debts on a corporation's tab. In court, that can be labeled embezzlement and fraud. Once again, this is typical Hollywood. They are not real business people.

The liabilities that exist in reference to The Weinstein Company are great, as Weinstein has harmed so many people via rape and sexual assault, as well as documented incidents of committing charity fraud and criminal copyright infringement, which guarantees a stream of lawsuits are coming, in addition to the ones that have already been filed in various courts of law.

I have stated it from the beginning, Weinstein is not a good film producer. Weinstein leeches off people with a talent for filmmaking, engages in criminal copyright infringement and bullies people in the business to get his way. That is not talent. That is financial fraud and mafia strong-arm tactics, which is illegal.

Many of Weinstein's film suck. Weinstein thinks he mastered the art of arthouse films, but many of his productions stink and are nonsensical. Weinstein is a pretentious prat and pervert. Sound films will not come from such a corrupt mind. Weinstein controlled Hollywood like a pimp with mafia ties.

Contreras-Sweet now wants to buy the Weinstein Company's film catalog (some of which Weinstein does not own due to criminal copyright infringement and massive problems will erupt from that). Contreras-Sweet is waiting for The Weinstein Company to slide into bankruptcy, which is on the horizon, as the company had turned into a type of Hollywood ponzi scheme and can't pay all its debts.

Initially, Contreras-Sweet wanted to takeover The Weinstein Company with an all female board. However, that's the business equivalent of a rape victim buying a rapist's house and moving into it, proclaiming it a victory. The public does not want to see The Weinstein Company continue and has not been supporting its newly released films (The Taint Of The Harvey Weinstein Sex Scandal Impacted Sales Of 'Paddington 2' At The Box Office).

The Weinstein Company's name is mud. The same goes for the Weinsteins' name in the business world. They are finished. The company needs to be dismantled (much like Weinsteins did to others' companies and careers, but when they did so it was illegal). It's not the best business move to try to carry on the Weinstein Company name and legacy, which have been effectively destroyed.

Under bankruptcy proceedings, the Weinstein Company building in New York will be up for sale, as will the film catalog, which could be purchased by separate buyers, effectively breaking up the company. The Attorney General should freeze all assets until his government lawsuit concludes and the bankruptcy court should factor and figure in the many lawsuits that have been filed against Weinstein and The Weinstein Company before any assets/funds are disbursed to the Weinstein Brothers and their handful of investors.

Harvey Weinstein is also facing personal bankruptcy. As the phase goes, "You reap what you sow." Weinstein illegally destroyed innocent people's careers and companies in the entertainment industry while on his arrogant ego trips, driving them into bankruptcy. It's only fair that he be met with the same in life.

STORY SOURCE

Investor group CANCELS deal to buy Weinstein Co after discovering the company was $55million deeper in debt than disclosed

Published: 17:16 EST, 6 March 2018 | Updated: 17:52 EST, 6 March 2018 - The investor group that had agreed to by The Winstein Co. has pulled out of the deal. The deal was terminated on Tuesday after it was discovered that the company's debt was $280 million rather than the $225 million previously disclosed, a source familiar with the matter told Reuters.

It was the latest dramatic twist in a long-running saga over the future of the New York-headquartered film studio, which has teetered on the brink of bankruptcy since Weinstein was hit by bombshell allegations, torpedoing his career last October. 'After signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction,' lead investor Maria Contreras-Sweet said in the statement.

The former Obama administration official said last week that the group had reached an agreement with the New York State Attorney General's office to buy assets from The Weinstein Company to launch a new firm. But Contreras-Sweet did not exclude future attempts to create a new firm from the ashes of Hollywood mogul Weinstein's downfall for alleged sexual misconduct.

'I believe that our vision to create a women-led film studio is still the correct course of action,' she said. 'To that end, we will consider acquiring assets that may become available in the event of bankruptcy proceedings, as well as other opportunities that may become available in the entertainment industry.' Contreras-Sweet said last week that her intention was to 'build a movie studio led by a board of directors made up of a majority of independent women, save about 150 jobs, protect the small businesses who are owed money and create a victims' compensation fund.'...

http://www.dailymail.co.uk

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