Introduction to the Case
A former San Fernando Valley resident who worked as a producer and accountant in the movie business was arrested on federal charges alleging he defrauded victims out of more than $12 million. The suspect, David Raymond Brown, 39, a onetime Sherman Oaks resident now living in West Columbia, South Carolina, is charged in L.A. federal court with nine counts of wire fraud, 10 counts of transactional money laundering, and two counts of aggravated identity theft, according to the U.S. Attorney’s Office.
Background and Charges
Brown made his initial appearance in U.S. District Court in Columbia, South Carolina. Brown’s arraignment is expected in the coming weeks in downtown Los Angeles. If convicted of all charges, Brown would face the possibility of decades in federal prison, prosecutors said. According to the indictment, Brown worked in the movie industry in various roles, including as a producer, unit production manager, and production accountant. He worked on various independent film projects to which he owed a fiduciary duty to their production companies.
Methods of Fraud
From December 2021 to August 2025, federal prosecutors allege, Brown defrauded his victims via several methods, including by misappropriating funds belonging to film production companies by causing money to be transferred from the companies’ financial accounts to accounts that Brown controlled. To create the false impression that the misappropriated funds were to be used for legitimate production expenses, Brown allegedly caused the film production companies to make payments to Hollywood Covid Testing LLC, a Studio City-based company he organized and operated, for services never rendered or already paid for, including by using false or duplicative invoices, according to the U.S. Attorney’s Office.
Use of Fraudulent Funds
Prosecutors contend Brown spent a substantial portion of victim-investors’ money on maintaining his lifestyle and repaying prior victims in a Ponzi-like scheme. To inflate his résumé and credibility, and to induce a victim to give him more money, Brown provided a copy of another person’s IMDb profile, which Brown claimed to be his own. He also concealed numerous lawsuits filed against him that alleged fraud, federal prosecutors said. Instead of using victims’ money on film productions as promised, Brown allegedly used their funds to purchase vehicles such as a 2025 Mercedes-Benz G-Wagon and three Teslas, including a 2024 Cybertruck. He also made mortgage payments on his personal residence and on home remodeling, including nearly $99,000 for the installation of a pool, the U.S. Attorney’s Office alleges.
Further Allegations
Federal prosecutors also contend that Brown used his victims’ money to buy a house for his mother, make payments to members of his family, pay for more than $70,000 on surrogacy and related services, private school tuition payments, and more than $970,000 in payments pertaining to a film project relating to the 1974 kidnapping of Patty Hearst by the Symbionese Liberation Army.
Conclusion
The case against David Raymond Brown is a complex one, involving multiple counts of wire fraud, transactional money laundering, and aggravated identity theft. The allegations against him paint a picture of a sophisticated scheme to defraud victims out of millions of dollars, using their funds for personal gain and to finance a lavish lifestyle. As the case moves forward, it will be important to watch for developments and to see how the legal system handles these serious allegations.
FAQs
Q: Who is David Raymond Brown?
A: David Raymond Brown is a 39-year-old former San Fernando Valley resident who worked as a producer and accountant in the movie business.
Q: What are the charges against Brown?
A: Brown is charged with nine counts of wire fraud, 10 counts of transactional money laundering, and two counts of aggravated identity theft.
Q: How much money is Brown alleged to have defrauded from his victims?
A: Brown is alleged to have defrauded his victims out of more than $12 million.
Q: What was the purpose of the Hollywood Covid Testing LLC company?
A: The company was allegedly used to create the false impression that misappropriated funds were being used for legitimate production expenses, by causing film production companies to make payments for services never rendered or already paid for.
Q: What is the potential penalty if Brown is convicted of all charges?
A: If convicted of all charges, Brown would face the possibility of decades in federal prison.
