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Minnesota woman faces charges in "DHS" scam
By Jesse Hiestand
Fri Feb 17, 8:53 PM ET
A former Los Angeles resident has been indicted in connection with a scheme to scam investors by getting them to fund a nonexistent television series about the Department of Homeland Security, prosecutors said.
Alison Heruth was arrested Friday at her home in Minnesota on suspicion of lying to authorities about her knowledge of the scam run by her longtime associate, Joseph Medawar, the U.S. Attorney's Office in Los Angeles said. Heruth is accused of pretending to be the lead actress in the show, "DHS."
The more than $5.5 million raised from investors allegedly was diverted to Medawar, Heruth and others to pay for personal expenses such as home rentals, jewelry, child care, food and entertainment and automobile leases.
Heruth has been charged with two counts of concealing the crime and one charge of making false statements to the FBI and IRS, prosecutors said.
Heruth was set to make her initial appearance in U.S. District Court in Minneapolis on Friday, while Medawar is free on a $1 million bond.
Medawar was arrested September 23 and has been charged in a 34-count indictment with mail fraud, wire fraud, money laundering and other charges.
It's alleged that between May 2003 and September, Medawar got at least 70 investors to buy stock in his company, Steeple Entertainment, by claiming that it was worth more than $200 million and would soon be conducting an initial public offering.
He also is accused of falsely claiming that President Bush and the actual Department of Homeland Security had endorsed the "DHS" series, which purportedly already had 26 episodes in postproduction.
Reuters/Hollywood Reporter
Copyright © 2006 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
Copyright © 2006 Yahoo! Inc. All rights reserved.
Minnesota woman faces charges in "DHS" scam
By Jesse Hiestand
Fri Feb 17, 8:53 PM ET
A former Los Angeles resident has been indicted in connection with a scheme to scam investors by getting them to fund a nonexistent television series about the Department of Homeland Security, prosecutors said.
Alison Heruth was arrested Friday at her home in Minnesota on suspicion of lying to authorities about her knowledge of the scam run by her longtime associate, Joseph Medawar, the U.S. Attorney's Office in Los Angeles said. Heruth is accused of pretending to be the lead actress in the show, "DHS."
The more than $5.5 million raised from investors allegedly was diverted to Medawar, Heruth and others to pay for personal expenses such as home rentals, jewelry, child care, food and entertainment and automobile leases.
Heruth has been charged with two counts of concealing the crime and one charge of making false statements to the FBI and IRS, prosecutors said.
Heruth was set to make her initial appearance in U.S. District Court in Minneapolis on Friday, while Medawar is free on a $1 million bond.
Medawar was arrested September 23 and has been charged in a 34-count indictment with mail fraud, wire fraud, money laundering and other charges.
It's alleged that between May 2003 and September, Medawar got at least 70 investors to buy stock in his company, Steeple Entertainment, by claiming that it was worth more than $200 million and would soon be conducting an initial public offering.
He also is accused of falsely claiming that President Bush and the actual Department of Homeland Security had endorsed the "DHS" series, which purportedly already had 26 episodes in postproduction.
Reuters/Hollywood Reporter
Copyright © 2006 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
Copyright © 2006 Yahoo! Inc. All rights reserved.