Wednesday, April 25, 2012

SEC probing Fox, Disney and Dreamworks for bribes to state-owned China Film Group

The Hollywood Reporter says that on Tuesday, Reuters said it was tipped to an investigation by U.S. regulators by an unidentified person who had knowledge of letters sent to the studios in the past two months.
     Fox, Disney and Dreamwords have not commented to either Reuters or the Hollywood Reporter. China Film Group declined comment to Reuters.
     The state-owned China Film Group tightly limits the number of foreign releases allowed in the country to about 20 per year...If true, an investigation could lead to prosecution for violations of the Foreign Corrupt Practices Act, which makes it illegal for Americans to pay bribes to foreign government officials in order to facilitate their business dealings.
     While the law has been on the books in the U.S. since the 1970s, it has only been used a few times. An action against Hollywood studios would be a bombshell case.

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