Rebecca Lawsuit Highlights Importance of Due Diligence

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When seeking funding for a movie, television, or theater production, it can be difficult not to jump at the first investor that comes forward. However, as a recent entertainment lawsuit highlights, not all investors are who they claim to be.

Producers of the Broadway show Rebecca-The Musical (which is based on the 1938 novel Rebecca by Daphne du Maurier) have filed a $100 million fraud lawsuit against a stockbroker who had promised to secure funding for the show. Mark C. Hotton has also been arrested on criminal charges.

According to the civil lawsuit, Hotton presented himself as a registered stockbroker and someone who had experience in funding theater productions. However, the producers contend that it turned out to be an elaborate fraud.

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