Movie Producer David Brown Indicted in $12 Million Fraud Involving Fake Covid Tests and a Patty Hearst Film

Movie producer David Brown was arrested Wednesday on charges that he defrauded business partners out of $12 million by creating fake companies and using investor funds to pay his personal expenses.

Brown, 39, was indicted on 21 counts of wire fraud, money laundering and identity theft. Among other things, he is accused of setting up a company called Hollywood Covid Testing LLC and using it to bill productions for COVID tests that never occurred.

Prosecutors allege that Brown also swindled investors in real estate and film deals, using the money to buy a 2025 Mercedes Benz G-Wagon and a series of Teslas, a house for his mother, as well as to pay his mortgage, install a pool and a Subzero freezer, pay for private school tuition and to put $70,000 into surrogacy services.

He is also accused of diverting $970,263 in investor funds to an entity set up to make a film about Patty Hearst and her kidnapping by the Symbionese Liberation Army – a project that did not come to fruition.

Brown produced “The Fallout,” a 2021 film starring Jenna Ortega that won the grand jury award at South by Southwest. He is also listed as an executive producer on “The Apprentice,” the 2024 film about a young Donald Trump.

Last year, Brown announced the launch of the Screen Company, a production, sales and finance entity.

“I believe in the power of storytelling,” he said at the time. “Our mission is to provide reliable and flexible financing that brings extraordinary stories to life.”

Brown has been repeatedly sued by investors who accuse him of fraud. The Los Angeles Times extensively covered the allegations against him in 2023. Brown denied the allegations to the paper and said they were the result of misunderstandings.

Brown used to live in Sherman Oaks, but has since moved to South Carolina, where he was arrested Wednesday. He made an initial appearance in federal court and will later be arraigned in Los Angeles.

In addition to producing, he has worked as a unit production manager and a production accountant.