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Saturday, 20 October 2012 - Broadway producers file $100 million suit in Rebecca scam case |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Investing Simplified Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Nader Mousavizadeh Lucy P. 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The suit against Mark Hotton, 46, comes days after authorities charged him with two counts of wire fraud for allegedly having fabricated investors - one of whom he claimed suddenly died from malaria - to dupe the producers of "Rebecca: The Musical." A gothic thriller based on a 1938 Daphne du Maurier novel, "Rebecca" had been set to make its Broadway debut this fall in a $12 million production pulled together by Ben Sprecher and Louise Forlenza. When the play ran into financing trouble, Sprecher and Forlenza were put in contact with Hotton, whom the suit alleges came up with four "investors" willing to pledge $4.5 million. "In fact, Hotton was perpetrating an elaborate ruse. None of the investors existed; he had concocted them all," according to the lawsuit filed in New York state court. "Hotton made up the names, dates of birth, home addresses, email addresses, telephone numbers, and signatures of purported investors." Just before the financing was due, the suit charged, Hotton gave the production team troubling news: Paul Abrams, the largest single investor, had died of malaria and the three other investors were pulling out. "This was a lie," the suit said, "although plaintiffs did not know it at the time." Adding another twist to the drama, the suit said an investor who read accounts of the show's financial drama swept in to offer $2.25 million to save "Rebecca." The investor was not identified in the suit. But that financing also fell apart when the investor received an email from someone using a false name, the suit said. This person wrote that "the walls are about to cave in" on the production and "with this prospect of fraud, an ongoing money shortage, a bad public perception, anemic ticket sales, and a rabid press corps, the only good reason to invest" in the show would be for a tax write-off. Sprecher and Forlenza have sued the email' s author for defamation. The show's producers have delayed its opening, and there are now doubts about the future of a musical that debuted in 2006 in Vienna, Austria, but has yet to make it to London or Broadway. If it doesn't open, the lawsuit said, Hotton would be "responsible for its destruction." (Reporting by Paul Thomasch; Editing by Xavier Briand) Entertainment Fashion Investing Simplified Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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