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LA Judge Rules Crash Producer Engaged in Creative Accounting

I don’t watch movies but coincidentally, I saw Crash and frankly it’s a miracle it made any money at all (not to mention three Academy Awards, but what do I know about movies?). That being said, L.A. Superior Court Judge Daniel Buckley has determined producer Bob Yari engaged in creative accounting, ruling that Yari did so as part of an intentional scheme to withhold money from director Paul Haggis, star Brendan Fraser and co-writer Bobby Moresco.

The plaintiffs’ suit alleged that Yari improperly withheld money owed to them for the 2005 film and while Buckley has ruled in their favor, the judge has not yet set a monetary reward for plaintiffs.

The judge was clear in his ruling (which can be read in its entirety at the Hollywood Reporter), calling out the defendants’ inability to correct blatant accounting mishaps and outright fraudulent practices:

Defendants breached the contracts with the plaintiffs by diverting funds to third parties; adopting bogus contractual interpretations; refusing to correct accounting errors in a timely manner; adopting inappropriate accounting procedures that were contrary to industry standards; and, ultimately, using all of these to avoid paying plaintiffs money due under contracts.

This isn’t the first trip to court for Yari, who was sued for $100,000 by Matt Dillon, who played a dickhead cop in the film. Dillon’s company, Matthias Productions, performed an audit in 2006 and found that executives “deliberately authorized [the production entity] to apply an incorrect formula for the calculation of [Dillon’s] contingent compensation” and therefore owed him a larger piece of the $98 million the film grossed worldwide.

Paul Haggis, Brendan Fraser Win ‘Crash’ Lawsuit Against Producer Bob Yari [THR]