LA prosecutors check film agency

The Associated Press

LOS ANGELES -- Prosecutors are investigating whether officials with the agency that issues local film permits misused public funds for expenses such as trips to the Caribbean and tickets for professional sporting events.

No charges have been filed, but prosecutors have searched the offices of the Entertainment Industry Development Corp. and the home of its president, seizing financial records.

The corporation, whose board includes the entire Los Angeles City Council and the county Board of Supervisors, acts as a liaison with production companies, helping them navigate the film permit process.

In court papers released Friday, prosecutors said $50,000 in direct payments were made by the EIDC to the personal credit card of Cody Cluff, the 43-year-old president of the corporation.

Tom Brown, Cluff's lawyer, said his client has cooperated with investigators and done nothing wrong. Brown would not address specific allegations.

He said the investigation stems from a misunderstanding about the movie business.

"Part of the problem is that you've got county auditors who are used to going into county agencies, and this is not your typical county agency," Brown said. "When they see expense accounts where four Lakers tickets are provided to the movie industry, they don't know what to do with it ... They're just not sophisticated enough to deal with private industry."

County auditors said the search warrant was sought after the agency refused to turn over financial records this summer.

"They've been fighting giving us information," said Pat McMahon, the county's assistant auditor-controller.

The corporation, affiliated with both Los Angeles County and the city, charges $450 per permit and acts as a troubleshooter when movie producers have difficulty gaining access to public property or clash with neighbors.

Revenue from permits goes to the nonprofit EIDC rather than to public agencies.

Morrie Goldman, EIDC vice president, said the agency needs to spend generously to woo the high-rolling movie industry, as well as to contribute to the politicians who nurture show business.

Records show the agency contributed nearly $200,000 to politicians, including more than a dozen who sat on its board.