Calabasas Film Producer Sentenced for Forging Contracts

A Calabasas man was sentenced to four years in federal prison Wednesday for masterminding a scheme that involved forging film contracts to build false collateral in order to borrow $35 million from Comerica Bank.

In 2001, Harel Goldstein, 49, was caught forging film contracts known as "deal memos" to make it appear that foreign film producers were willing to pay for the distribution rights for six movies starring actors such as Peter O'Toole and Alicia Silverstone.

Goldstein forged more than $7 million in fraudulent deal memos, which he used to borrow more than $35 million from Comerica Bank to help produce the films.

His plan unraveled during the 2001 Cannes Film Festival and Goldstein subsequently accepted a plea bargain with investigators. He agreed to  show that others were involved in the scheme, said Thom Mrozek, a spokesman with the U.S. Attorney's Office.

Goldstein claimed the scheme was the brainchild of another producer, Mrozek said.

Goldstein wore a recording device to a dinner meeting with that producer, who discussed details of the scheme on tape, Mrozek added.

That producer was indicted, but the charge was dismissed after the FBI and U.S. Attorney's Office learned through further investigation that Goldstein had lied and had, in fact, started forging the false deal memos without the other producer's knowledge.

Goldstein then entered a new plea acknowledging that he had obstructed justice and lied to the FBI and prosecutors.

Goldstein was initially facing a prison sentence of 18 to 24 months, but that term was extended because of the obstruction of justice charge,  Assistant U.S. Attorney Gregory A. Lesser said.