Trustee: Bergstein withheld some info

By Alex Ben Block

In his first report, the forensic accountant assigned by a federal bankruptcy court judge to examine five companies managed by David Bergstein said “certain tax returns have not been filed,” as creditors in the involuntary bankruptcy action allege.

But Bergstein said that doesn't reflect what really is going on.

Interim trustee Ronald Durkin, a CPA and former FBI agent, said Bergstein has been cooperating but has frustrated efforts to get all of the records, files and documents Durkin needs. The trustee wrote that, in particular, he has not been able to get clarification or copies of any tax documents that might have been filed, though Bergstein has told him some were filed.

“Three weeks into this case,” Mr. Bergstein has not produced a single income tax return for any of the (companies in the involuntary bankruptcy), and it is uncertain whether (those companies) ever filed any income tax returns,” the report says.

In an interview Monday, Bergstein said he has cooperated with Durkin except for providing access to his personal computer and his assistant’s personal computer, both of which have years of files and records that he said are not relevant to the case.

David Bergstein now dancing with wolves

By Eriq Gardner

Another day, another lawsuit involving David Bergstein.

This one is over foreign receipts from the Oscar-winning film "Dances With Wolves." According to the lawsuit, filed this week in L.A. Superior Court, money was allegedly diverted to entities controlled by the embattled film producer.

Dances With Wolves Prods. says it entered into a written agreement in 1997 with Intermedia Film Distribution Limited to distribute the film outside the U.S. and Canada. Intermedia was responsible for obtaining periodic royalty statements and making necessary collections. The lawsuit contends that the licensing revenues were to be paid to a collection account, not to Intermedia directly.

Intermedia then got into financial trouble. In 2008, Bergstein's R Media Acquisitions sued Intermedia for breach of contract, alleging his company was owed nearly $8 million. He sought to take control of Intermedia's film library. Later that year, the court accepted Bergstein's motion to appoint William Shpall as a receiver.

Bergstein fires back at hedge fund

By Alex Ben Block

David Bergstein and Ronald Tutor have filed a countersuit against D.B. Zwirn, blaming the bankrupt New York hedge fund for most of their financial problems in the movie business.

They allege that the Zwirn Special Opportunities Fund, its founder Daniel Zwirn and various affiliates promised them $250 million in financing to make and distribute movies but then lied, committed fraud, piled on excessive charges and failed to deliver the money needed to meet obligations to filmmakers, vendors and others.

Meet Ron Durkin, the new trustee in the Bergstein bankruptcy case

By Alex Ben Block

A former FBI agent who is a specialist in white collar crime has been chosen as interim trustee to carry out a federal bankruptcy court judge's order to oversee and examine the operations and books of five companies run by David Bergstein, including Capitol Films and ThinkFilm.

The two sides in the action both agreed on Ronald Durkin, managing director of Durkin Forensic, who was first proposed by Bergstein's legal team.

Bergstein, CEO of Pangea Media Group, said Thursday that he insisted on a forensic accountant, as opposed to other candidates suggested by the creditors group that brought the involuntary bankruptcy petition. He said he approved the appointment and would work with Durkin on all appropriate matters.

Citing 'overwhelming evidence,' judge appoints trustee over Bergstein companies

By Alex Ben Block

In a rare legal action, a U.S. bankruptcy court judge Tuesday appointed an interim trustee to seize control of David Bergstein's Capitol, ThinkFilm and related entities after an attorney for the creditors repeatedly referenced the way the producer operated his global web of businesses as "the Enron of the entertainment world."

Creditors attorney David Neale of Levene, Neale detailed accusations including operating without proper accounting systems, use of company funds to cover personal gambling losses, failing to file tax returns or remit payroll taxes to the government, bouncing checks, defaulting on legal judgments, failing to pay talent participations and Bergstein denying his own execs information needed to do their jobs.

Bergstein blames former lawyer for getting him into this mess

By Matthew Belloni

EXCLUSIVE: Beleaguered film exec David Bergstein is blaming his former lawyer for getting him into hot water with creditors.

Bergstein, business associate Ron Tutor and related Bergstein entities today sued attorney Susan Tregub, claiming that she used knowledge she gained from repping Bergstein and his companies to embark on a campaign to hurt him, including allowing an unspecified lawsuit against Bergstein to go into default and contacting creditors to urge them to file involuntary bankruptcy proceedings against some of the entities.

Creditors sue Bergstein to stop sale of movies

By Alex Ben Block

A group of 13 creditors who together are owed millions of dollars by David Bergstein and some 75 corporate entities he controls worldwide, including Capitol Films and ThinkFilm, have filed lawsuits in federal court in Los Angeles to force an involuntary Chapter 11 bankruptcy and the immediate appointment of a trustee to take charge of whatever assets and businesses remain.