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FBI Expands Investigation Into State Film Tax Credit Program

The FBI is widening its investigation into possible fraud in the state’s film tax-credit program.

The New Orleans Advocate reports producer George Kostuch is suspected of bilking the state over inflated production costs.

Two filmmakers pleaded guilty last year to federal wire fraud charges, and are now cooperating with federal investigators.

The FBI wrote in a search warrant application that the scheme was carried out on the motion pictures Xtinction: Predator X, Sports Trivia Clash and Mysterious Island.

The FBI says the scheme also involved a conspiracy to defraud the state through the film Paranormal Plantation.

But inflated expenses were denied by the state Department of Economic Development during the certification process.

Eileen is a news reporter and producer for WWNO. She researches, reports and produces the local daily news items. Eileen relocated to New Orleans in 2008 after working as a writer and producer with the Associated Press in Washington, D.C. for seven years.

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