BATON ROUGE, LA (WAFB) - A man who pleaded guilty to conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana's Motion Picture Industry Development Tax Credit Program, has been sentenced to six months in federal prison and six months in a halfway house. He has also been ordered to pay $900,000 in restitution to the State of Louisiana.
Daniel Garcia, 38, admitted that he owned and operated DMG Holdings, LLC, and Louisiana Film Finishers, LLC, companies that provided technical services for the production of motion pictures.
Between February 10, 2009 and March 31, 2010, Garcia applied for, and received, tax credits from the Louisiana Economic Development Office ("LED") for various movies.
The Tax Credit Program provided a 30 percent tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable.
In this case, however, Garcia admitted that he conspired with at least one other individual to make a series of financial transfers, which created canceled checks, which were later used to falsely reflect $3,000,000 of expenditures that had purportedly been incurred in motion picture productions.
These false expenditures allowed Garcia to be awarded tax credits, and he admitted that he was not entitled to $900,000 of the tax credits he received.