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July 29, 2009

Federal Bureau of Investigation - The New Orleans Division: Department of Justice Press Release

For Immediate Release
July 29, 2009
United States Attorney's Office
Eastern District of Louisiana
Contact: (504) 680-3000

Former Louisiana Film Commission Director Sentenced in Bribery Scheme

NEW ORLEANS, LA—Mark S. Smith, the former Director of the Louisiana Film Commission and an attorney, age 47, a resident of Baton Rouge, Louisiana, was sentenced this morning in federal court by U. S. District Judge Kurt D. Engelhardt to two years (24 months) in federal prison as well as pay a $67,500 fine, announced U.S. Attorney Jim Letten. In addition, Judge Engelhardt ordered that SMITH serve three (3) years of supervised release following his term of imprisonment, during which time he will be under federal supervision and risk additional imprisonment should he violate any terms of the supervision.

According to court documents, SMITH pled guilty on September 7, 2007 to a two-count Bill of Information charging him with conspiracy and bribery in connection with a program receiving federal funds. SMITH admitted that between 2003 and 2005, while serving as Director of the Louisiana Film Commission, he approved fraudulently inflated movie budgets submitted by a film production company in order for the film company to receive state tax credits. In return, SMITH accepted cash bribes totaling over $65,000.00. Additionally, SMITH admitted that a businessman wrote corporate checks to a third party who cashed the checks and passed the cash to SMITH.

Michael J. De Palma, Special Agent in Charge of Internal Revenue Service Criminal Investigation stated:

"The film industry is important for the future economy of Louisiana. Today's sentence makes it clear that the federal law enforcement community and the United States Attorney's Office will work together to identify those individuals who conspire with each other to defraud the system to benefit themselves, while the state, its reputation and its citizens suffer. Special Agents of IRS Criminal Investigation are highly skilled investigators who will continue to work with the FBI and other federal and state law enforcement partners to ferret out corruption wherever it is found."

Two other individuals, William Bradley, a Hammond attorney, and Malcolm Petal, a film executive and attorney were charged, pled guilty and sentenced in a related separate case before U.S. District Judge Lance M. Africk. Bradley, charged with conspiracy to bribe a state official was sentenced to serve ten months in federal prison. Malcolm Petal, also charged with conspiracy, was sentenced to serve five years in jail, a fine of $15,000.00 and restitution to the State of Louisiana of $1,350,000.00.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys Carter K.D. Guice, Jr., G. Dall Kammer and Peter M. Thomson.

Federal Bureau of Investigation - The New Orleans Division: Department of Justice Press Release