A California movie producer who heads a private equity firm has been arrested, federal prosecutors said on Wednesday, as the U.S. Securities and Exchange Commission accused him of orchestrating two fraudulent schemes.
The SEC filed a lawsuit in Manhattan federal court against David Bergstein, the chief executive of Cyrano Group Inc who served as executive producer of the 2015 film "In the Heart of the Sea."
A spokesman for Manhattan U.S. Attorney Preet Bharara confirmed Bergstein, 54, was arrested in connection with a related criminal case. Charging papers were not immediately available.
Bergstein was arrested in California, where he resides, the spokesman said. A lawyer for Bergstein did not immediately respond to a request for comment.
In its lawsuit, the SEC said the case involved two schemes Bergstein orchestrated in 2011 and 2012 to steal millions of dollars invested in hedge funds advised by Weston Capital Asset Management LLC, which he used to support an extravagant lifestyle.
In total, the SEC said Bergstein misappropriated more than $5.8 million.
Previously, Bergstein controlled several movie production companies including ThinkFilm and Capitol Films Development. He took an advisory role in Walt Disney Co's 2010 sale of Miramax to an investor group that included a business partner.
His movie credits include serving as an executive producer of 2004's "The Whole Ten Yards" and 2007's "Before the Devil Knows You're Dead."
But in 2010, five of Bergstein's film companies including Capitol Films and ThinkFilm were forced into bankruptcy at the urging of a group of creditors, court records showed.
The case is Securities and Exchange Commission v. Bergstein, U.S. District Court, Southern District of New York, No. 16-cv-08701.