Investors sue film financier David Molner, alleging misappropriation of funds
Film financier David Molner has been hit with a lawsuit by investors who've accused of him fraud and breach of contract.
In a complaint filed in Los Angeles Superior Court this week, investors alleged that Molner plundered a Cayman Islands-based film fund he controlled, Aramid Entertainment Fund Ltd., and used it as a "personal piggy bank for himself and the entities he controlled." Aramid was established in 2006.
The lawsuit alleged that Beverly Hills resident Molner and his associates hid Aramid's financial woes from auditors and took out more than $60 million from the fund to pay fees to themselves and make loans to entities they controlled. The "looting" left the fund in such dire shape that it was delisted from the Cayman Islands Stock Exchange in March.
Molner did not return calls seeking comment.
The suit was brought by Cayman Islands-based Wimbledon Financing Master Fund Ltd. and Stillwater Market Neutral Fund III SPC, which also named Molner's Screen Capital International as a defendant.
Molner's Aramid fund has financed a number of movies made by embattled producer David Bergstein, including the recently released "Love Ranch" with Helen Mirren.
-- Richard Verrier