business partner

A Hollywood producer bilked film and business partners out of $12 million, claiming he was using their money to work on movies or other legitimate enterprises, but instead using it to buy expensive cars, houses and even a surrogate, prosecutors alleged Wednesday.

David Brown worked for years as a producer of indie Hollywood productions, burnishing his credentials as a producer of the film festival darling “The Fallout,” starring Jenna Ortega, which won the narrative feature competition at South by Southwest, as well as of “The Apprentice,” the movie about the rise of Donald Trump.

But even as Brown seemed to be putting together a successful producing career, federal prosecutors said, he was also defrauding numerous victims by siphoning funds that belonged to production companies and transferring the money to himself or businesses he controlled.

In an email to The Times for a 2023 article that documented the trail of fraud allegations that dogged him, Brown said he had made mistakes in the past, but denied defrauding anyone.

“I had to work really hard to get where I am today,” he said. “I had to overcome a lot. I had to fight for my place. … I’m not some bad guy.”

Brown was indicted Wednesday on 21 counts of wire fraud, transactional money laundering and aggravated identity theft. He had his first court appearance in South Carolina.

Prosecutors alleged that Brown, who lived in Sherman Oaks, used a series of tactics to defraud his business partners out of their money.

He convinced one victim to put money into a company called Film Holdings Capital, which was supposed to finance film projects. But Brown instead took the person’s money and used it for “maintaining his lifestyle and repaying prior victims … in a Ponzi-like scheme,” prosecutors said.

In other instances, Brown used production company funds to pay Hollywood Covid Testing, a company he controlled, “for services never rendered or already paid for,” prosecutors said.

He also told one victim that they could pool money and make a business flipping houses. He contributed little to the business and used some of the victim’s money for other purposes, prosecutors said.

Brown made sure to conceal his checkered past from potential business partners. He tried not to let them know about the 2023 article in The Times, or about the extensive litigation filed against him, according to federal prosecutors.

The 2023 article — for which The Times interviewed more than 30 people — detailed a series of allegations against Brown from his film partners, including that he forged Kevin Spacey’s signature and told film investors that Spacey had agreed to act as a main character in a film for just $100,000. But Spacey had not signed on to the film and did not even know what it was, his former manager told The Times. Brown denied forging Spacey’s signature.

Brown used the money he stole from his victims to make extravagant purchases, prosecutors said.

He bought a 2025 Mercedes-Benz G-Wagon and three Teslas, including a 2024 Cybertruck, prosecutors alleged. He used the funds to make mortgage payments on his home and to remodel the home and used about $100,000 to install a pool, prosecutors said.

He even bought a house for his mother using the ill-gotten cash, prosecutors alleged.

On top of that, Brown also allegedly used stolen money to pay $70,000 for surrogacy, private school tuition for his child and other services.

In all, he stole more than $12 million from his victims, prosecutors alleged.

Brown is in federal custody in South Carolina and will enter a plea to the charges at his arraignment in the coming weeks, according to the U.S. attorney’s office for the Central District of California.

A Hawaii real estate investor and broker are suing Shohei Ohtani, claiming the Dodgers’ star and his agent got them fired from a $240-million luxury housing development on the Big Island’s coveted Hapuna Coast that they brought him in to endorse.

According to the lawsuit filed in Hawaii Circuit Court on Friday, Ohtani’s agent, Nez Balelo, increasingly demanded concessions from developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto before demanding that their business partner, Kingsbarn Realty Capital, drop them from the deal.

“Balelo and [Ohtani], who were brought into the venture solely for [Ohtani’]s promotional and branding value, exploited their celebrity leverage to destabilize and ultimately dismantle Plaintiffs’ role in the project — for no reason other than their own financial self-interest,” the lawsuit claims.

The suit accuses Ohtani and Balelo of tortious interference and unjust enrichment. Hayes, a developer with 40 years of experience, and Matsumoto, who was to be the listing agent for the houses averaging $17.3 million each, say that Ohtani and Balelo also tried to undermine their interests in a second, neighboring venture.

A spokesman for Balelo’s agency, CAA Baseball, declined comment. Attempts to reach Kingsbarn officials for comment were not immediately successful.

“This case is about abuse of power,” the lawsuit says. “Defendants used threats and baseless legal claims to force a business partner to betray its contractual obligations and strip Plaintiffs of the very project they conceived and built.

“Defendants must be held accountable for their actions, not shielded by fame or behind-the-scenes agents acting with impunity. Plaintiffs bring this suit to expose Defendants’ misconduct and to ensure that the rules of contract, fair dealing, and accountability apply equally to all — celebrity or not.”

Dodgers star Shohei Ohtani, left, speaks with his agent, Nez Balelo, while attending a game between the Rams and New Orleans Saints at SoFi Stadium in December 2023.

(Ryan Sun / Associated Press)

Ohtani, 31, arrived from Japan in 2018 as perhaps the most heralded international star in baseball history, with an ability to both pitch and hit that made him doubly valuable to his team. A five-time All-Star and three-time most valuable player, he signed a record 10-year, $700-million contract with the Dodgers before last season and helped the team win the 2024 World Series.

Investment materials for The Vista at Mauna Kea Resort, which remained online on Monday night, listed Hayes and Matsumoto as part of the management team, along with Kingsbarn. It called Ohtani “Japan’s Babe Ruth” and the “1st Resident,” giving him top billing ahead of the iconic Mauna Kea Resort, “one of the most celebrated hotels in Hawaii,” Hapuna Beach, “rated the #1 beach in America by Conde Nast Traveler” and two golf courses — one designed by Arnold Palmer, the other by Robert Trent Jones Sr.

“Ohtani will act as the celebrity spokesperson for the project and has committed to purchasing one of the 14 residences within the project,” the brochure says. “He also intends to spend significant time at The Vista in the off-season and will construct a small hitting and pitching facility for preseason training.”

The suit says the developers spent 11 years working on the deal and “as part of a bold marketing strategy” signed an endorsement deal in 2023 with Ohtani, “one of the most high-profile endorsements imaginable.”

“This partnership with Ohtani will elevate the demand and create buzz within the Japanese luxury vacation home market, which is a primary target audience for the project,” the investment brochure said. “We see Shohei Ohtani’s homeownership as having a significant impact on the global exposure of the project and expect to accelerate the pace of sales, thereby helping us achieve our pricing objectives.”

The suit said Balelo “quickly became a disruptive force,” threatening to pull Ohtani from the deal if concessions weren’t made.

“Kingsbarn began capitulating to Balelo’s every whim,” the suit said. “Over time, it became increasingly obvious that Kingsbarn was more concerned about preserving its relationship with [Ohtani] than honoring its obligations to its business partners.”

Last month, in what the suit called “a coordinated ambush,” Kingsbarn fired Hayes and Matsumoto.

“Kingsbarn openly admitted during the call that Balelo had demanded the terminations and that they were being done solely to placate him,” the suit said. “Plaintiffs stand to lose millions of dollars in compensation tied to projected homebuilding profit, construction management fees, and broker commissions.”

Golen writes for the Associated Press.

John Elway won’t be charged in the death of his business partner back in April.

Riverside County Sheriff Chad Bianco confirmed what he told the Times two months ago: His department’s investigation into the golf cart incident that led to the death of the Hall of Fame quarterback’s close friend Jeff Sperbeck found nothing criminal. Bianco described it as a tragic accident.

Bianco said in May that it appeared “nothing nefarious” happened when Sperbeck fell from a moving golf cart that Elway was driving in the Madison Club community of La Quinta on April 26 about 6:50 p.m. The 62-year-old San Clemente resident hit his head and was pronounced dead at 1:10 a.m. April 30 at Desert Regional Medical Center, according to the Sheriff’s Office.

“We have not learned anything that would indicate that this is anything other than a tragic accident,” Bianco told the Times in a phone interview May 2.

Bianco told Denver TV station 9NEWS that the investigation has concluded and that Elway will not be charged.

Elway, Sperbeck and their wives were in the Coachella Valley to attend the Stagecoach country music festival. Sperbeck was standing in the back of the cart when he fell off and hit his head on the asphalt, Bianco said.

The cart was designed for two to four people, according to Bianco. Five people including Sperbeck, Elway and their wives were in it at the time of the incident.

On April 30, Elway said in a statement that “there are no words to truly express the profound sadness I feel with the sudden loss of someone who has meant so much to me.

“I am absolutely devastated and heartbroken by the passing of my close friend, business partner and agent Jeff Sperbeck,” Elway stated. “Jeff will be deeply missed for the loyalty, wisdom, friendship and love he brought into my life and the lives of so many others.”

Sperbeck represented more than 100 NFL players — including Elway beginning in 1990 — in 30 years as an agent and business advisor. Sperbeck and Elway later founded 7Cellars winery.

Sperbeck attended Jesuit High School in Sacramento and played quarterback at Sacramento City College in 1981 and 1982 before transferring to Cal Poly San Luis Obispo. He is survived by his wife, Cori, three children he shared with his first wife, Anne — Carly, 33, Samantha, 31, and Jackson, 27 — and granddaughters Josie and Bo.

Elway starred at Granada Hills High and Stanford before playing 16 seasons for the Denver Broncos, leading the team to five Super Bowls. The Broncos won the Super Bowl in Elway’s last two seasons, 1997 and 1998. He later served as the team’s general manager and executive vice president.

Times staff writer Chuck Schilken contributed to this story.