LOS ANGELES : 5 Indicted in Scheme to Bilk Movie Investors

Five Californians and a Texan who allegedly ran a phony telemarketing investment scheme have been indicted by a federal grand jury in Los Angeles.

The 54-count indictment accuses them of money laundering, conspiracy, and mail and wire fraud stemming from operation of Chariot 7 Productions Inc., which sold limited partnerships in films, Assistant U.S. Atty. John Libby said. The partners are accused of lying about Chariot 7’s experience in producing movies and about aspects of its projects, Libby said. At least $262,000 in investment money was used for personal expenses for one of the partners, he said.