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Finance officer gets sentence reduced for failing to report fake TV show

The Associated Press | Tuesday, Sep 19 2006 4:15 AM

Last Updated: Tuesday, Sep 19 2006 4:15 AM

A financial officer who failed to report a scheme that bilked millions of dollars from people who invested in a phony television series had his sentenced reduced from a year in prison to probation.

Jeffrey Rosenberg, 58, of Los Angeles, had been sentenced in July to 10 months in federal prison, before federal prosecutors asked to reduce his sentence. Rosenberg, who had not yet reported to prison, now will have to fulfill 2,000 hours of community service in addition to being on probation for five years.

Federal prosecutors said Monday that Rosenberg has cooperated with them and was the first person involved in the scam to admit wrongdoing.

Rosenberg worked for Joseph Medawar, a Hollywood producer who told investors he created a show about the U.S. Department of Homeland Security and that his production company was about to publicly sell stock worth more than $200 million. As part of the scheme, federal prosecutors said, he falsely claimed 26 episodes of "DHS" were in post-production and that the company had distribution deals with 137 overseas markets.

Medawar's lies included telling investors that President Bush endorsed the series and that the real Department of Homeland Security approved use of its name and seal for the TV show, prosecutors said.

Medawar pleaded guilty in May to tax evasion and conspiracy to commit mail fraud and wire fraud. He faces up to 10 years in prison and $9 million in fines when he is sentenced Nov. 13.

Alison Heruth, who claimed to be the lead actress in "DHS," also pleaded guilty in the case and was given probation.

Rosenberg has been ordered to pay $1.5 million in restitution to the victims of the investment scam.