Criminal charges may be pursued in Blaine Kern tax credit dispute

The state is pursuing possible criminal action against New Orleans float builder Blaine Kern Artists and a movie production company with which it was affiliated for taking nearly $1 million in movie tax credits they allegedly did not earn. East Baton Rouge Parish District Attorney Hillar Moore III confirms the case was referred by the state both to his office and to Orleans Parish District Attorney Leon Cannizzarro’s after a report from the Louisiana Legislative Auditor was released last week questioning the tax credits. According to the report, BKA and Louisiana Entertainment Productions got $935,000 in movie tax credits to produce a Carnival documentary, which was made but never aired. The audit claims the credits were sold for $821,000 and that most of the funds were used to cover normal business operations—namely, float building—rather than movie-making expenses. Moore says he reviewed the case but that, since the initial complaint was filed in Orleans Parish, where BKA is located, the New Orleans district attorney will be investigating to determine whether charges should be filed. “I spoke to them [Cannizzaro’s office] and they are going to investigate, so there is no need for us both to do it,” Moore says. LED Secretary Stephen Moret says in an email, “LED is in the process of seeking recovery of the amount of any wrongful tax credits from the individuals and/or entities that committed the misrepresentation.” Citing the possibility of litigation, Moret declined further comment. A Blaine Kern spokesperson has denied the tax credits were not earned. Read a Daily Report article about the Legislative Auditor’s initial report and Blaine Kern’s response here. —Stephanie Riegel