Hollywood studios and film producers are set to face increasing scrutiny from anti-fraud officials, as a result of a trial involving incidents in Bangkok that could have repercussions across the entertainment sector.
Gerald Green, an American film producer, and his wife, Patricia, are alleged to have violated the US Foreign Corrupt Practices Act by paying bribes to a Thai tourism official. It is claimed that the alleged bribes were offered to obtain contracts to run an international film festival in Bangkok.
The Greens' trial in Los Angeles, which is entering its second week, is the first under the FCPA to involve the entertainment industry. The case suggests that Hollywood has joined the pharmaceuticals and energy industries as a target of anti-fraud enforcers at the US department of justice.