Ex-MGM Studio Chief Parretti Convicted

Italian financier Giancarlo Parretti was found guilty Wednesday of perjury and tampering with evidence in connection with the 1991 trial that cost him control of MGM studio.

A state court jury deliberated for close to six hours Wednesday before returning the verdict. Parretti showed no emotion when the decision was read.

The financier could face up to 10 years in prison when he is sentenced Nov. 18. He remained free Wednesday on $100,000 bail but was told he would have to post an additional $15,000 by Monday.

Parretti’s attorney said he is considering asking for a new trial.

Prosecutor Paul Wallace said he hadn’t decided what amount of jail time to ask for but he would ask the court to consider Parretti’s criminal history in Europe.

“This is an incredibly dangerous crime. It could have meant financial disaster for what is an institution,” said the prosecutor, referring to the movie studio.

During the 1991 trial, Parretti claimed he received a fax from the French bank Credit Lyonnais showing he had acted properly in his dealings with the bank. Credit Lyonnais had financed Parretti’s $1.3-billion purchase of the fabled movie studio in 1990 but later sued him, alleging mismanagement.

The bank said it did not send the fax, which said Parretti could remain in command of the studio if he agreed to certain terms.

The defense argued Parretti didn’t know the document had been changed to make it look like it came from Credit Lyonnais.

The prosecution, however, argued Parretti knew the fax had been altered.

Parretti did not testify during the trial.

Credit Lyonnais sued Parretti in Delaware Chancery Court in June 1991, claiming he continued exerting day-to-day control over the studio after agreeing to relinquish control to the bank. It alleged Parretti was ruining the studio and defaulting on loans.

The court granted control of the studio to Credit Lyonnais in December 1991. In July 1992, Parretti was indicted on perjury and evidence-tampering charges.

Credit Lyonnais recently agreed to sell MGM to a group that includes Kirk Kerkorian, the Las Vegas billionaire financier who had sold the studio to Parretti.

Parretti, who had been living in Italy, returned to the United States in October 1995 to plead innocent to the charges. He was released on bail and has been living in California, where he continues to battle the bank in civil court.