Chinese Animation Studio Says It Is Victim of Massive $234 Million Fraud

variety.com:

Gene Maddaus Senior Media WriterA Chinese visual effects and animation studio filed a lawsuit Thursday alleging that it is the victim of two American swindlers who forged documents, impersonated the CEO, and conned investors out of $234 million.Base FX, headquartered in Beijing, states that it was duped into trusting the two men — Remington Chase and Kevin Robl — over the course of several years, in which they engaged in several financing arrangements and a joint venture in Malaysia.However, over the last year and a half, the company has discovered that the men were using the relationship as a lure for investors, who were deceived into signing over $234 million, in what they thought were loans and investments in the company and its projects.

Base FX alleges that Chase and Robl forged the signature of the company’s CEO on investment documents, created fake entities and bank accounts, had someone pretend to be the CEO in calls with investors, and set up a fake office for the company in Pasadena, Calif.

The company is unable to account for any of the funds, and says that the two men appear to have siphoned off millions of dollars for their personal use.

Base FX employs about 450 workers, and did effects work on blockbusters like “The Avengers,” “Captain America,” and “Iron Man,” as well as TV series including “The Mandalorian” and HBO’s “Boardwalk Empire.” The company also produced an animated film, “Wish Dragon,” which was released theatrically in China and elsewhere on Netflix.The company is now facing angry demands and lawsuits from investors who were swindled.