Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Former Hollywood executive gets 6 years prison for defrauding BlackRock fund

Published 09/09/2022, 05:53 PM
Updated 09/09/2022, 07:05 PM
© Reuters.

© Reuters.

By Jonathan Stempel

NEW YORK (Reuters) -The former head of a Hollywood movie distributor whose films have starred actors such as Halle Berry and Matthew McConaughey was sentenced on Friday to six years in prison after he pleaded guilty to defrauding a BlackRock Inc (NYSE:BLK) investment fund.

William Sadleir, who ran Aviron Pictures LLC, was sentenced by U.S. District Judge Paul Engelmayer in Manhattan, and also ordered to pay $31.6 million in forfeiture and restitution.

Sadleir, 68, of Beverly Hills, had pleaded guilty in January to two counts of wire fraud over schemes related to the closed-end BlackRock Multi-Sector Income Trust Fund, which had invested $75 million in Aviron.

Prosecutors said Sadleir misappropriated more than $25 million, including to buy a $14 million Beverly Hills mansion, by pretending it was invested in prepaid media credits, and masqueraded as ad executive "Amanda Stevens" to email BlackRock.

They said Sadleir forged a BlackRock manager's signature for the sale of more than $3 million of assets that secured BlackRock loans to Aviron, which later defaulted on those loans.

Sadleir had pleaded guilty in March to receiving $1.7 million in federal Paycheck Protection Program loans purportedly to help Aviron pay workers during the COVID-19 pandemic, though the company had by then already shut down.

Sentencing in that case is scheduled for Sept. 28 in federal court in Los Angeles. Prosecutors there have said they would recommend the sentence run concurrent with the Manhattan sentence.

Sadleir's lawyers had urged Engelmayer not to impose a prison term, saying the father of two young boys was "deeply sorry for, and embarrassed by, his crimes," and that there was "no chance" of recidivism.

"Mr. Sadleir is obviously disappointed with today's sentence, but accepts the court's judgment," his lawyer Matthew Schwartz said in an email. Sadleir also apologized to his family and Aviron employees, Schwartz added.

Aviron's films had included Berry's "Kidnap" and McConaughey and Anne Hathaway's "Serenity."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.