Los Angeles-based movie director Daniel Adams inflated expenses for two films he made in Massachusetts in order to collect $4.7 million in tax credit payments, Massachusetts attorney general Martha Coakley’s office said Monday, citing indictments returned by a grand jury.
According to Ms. Coakley’s office, Mr. Adams was arrested December 8 by State Police and arraigned Friday on charges, including making a false claim, larceny over $250, and procuring the preparation of a false tax return. He pleaded not guilty and was ordered held on $100,000 cash bail.
Ms. Coakley’s office said the charges stem from an investigation that started in March 2010, after a Department of Revenue investigator noticed suspicious tax returns connected to the film “The Lightkeepers.” Among other things, prosecutors allege that Mr. Adams paid actor Richard Dreyfuss $400,000, but reported that he had paid him $2.5 million.
Mr. Adams, 50, left a string of bad debts on Cape Cod where he filmed several movies over the past 15 years, according to the Cape Cod Times.
Mr. Adams is a former Chilmark resident, who commissioned the design and construction of Rebecca, a 60-foot schooner, from Gannon and Benjamin Marine Railway. Mr. Adams used his property off Middle Road in Chilmark to help fund the construction of the schooner, but ultimately lost both the property and the schooner in bankruptcy. Gannon and Benjamin completed the schooner for new owners, Brian and Pamela Malcolm, for whom she was launched in May of 2001.