Ooooh, DRAMA! Merrill Lynch and Bank of America believes that the Regent Group (they own OUT, The Advocate and Here!) scammed them out of $90 ASS million DOLLARS!
Here's more:
Merrill and BofA claim that Stephen Jarchow and his string of companies falsely represented they would use the money to buy film rights and advertising, but funneled it into Jarchow's pockets.
The Regent Group "finances, produces and distributes theatrical and television motion pictures," according to the 57-page Superior Court complaint.
In 2005 and 2006, Merrill Lynch advanced $50 million on two loan agreements to Regent's affiliates, for them to acquire film rights and "to finance the print and advertising costs in connection with the exploitation" of the film rights, which were considered collateral, the complaint states.
Regent's entities promised to sublicense the film rights to get licensing fees, which would be used to pay back the loans, according to Merrill and BofA.
Merrill says it based its loans to Regent on licensing contracts with third parties. But it claims that Regent and its affiliates "conspired to create sham license and distribution agreements to give the appearance that the films being financed were contractually entitled to a fixed revenue of a certain amount."
Scandal! I wonder what will happen if this turns out to be true? And will this destroy gay media?
source
3 comments:
Someone scammed a bank out of millions? Hey, someone had to get even for the middle class.
All I know is I subscribe to the HERE channel because the claimed to be producing new episodes of the DL CHRONICLES and DANTES COVE and other original media, but that hasn't happened in about a year.
All I can say is "STUNT QUEENS!"
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