The state of Florida recently filed a suit against ex-executives of Digital Domain Media Group Inc., indicating the special-effects firm was a Ponzi scheme that swindled the state over $80 million in economic grants.
From a complaint filed early this week, the state claimed that Digital Domain, which filed for bankruptcy several years after its operation expansion in Florida, improperly represented the business it brought to the state and later misusing the funds it was given for creating high earning jobs.
Once Digital Domain gained state grants, the new business quickly had an interest in funneling the funds to a business with a poor financial structure, and defaulted its debt just as the state funded the firm’s grant request.
Florida gave Digital Domain $20 million as well as $62 million in addition grants from two of the state’s municipalities.
William Scherer of Conrad Scherer, the attorney overseeing the suit, says his motivation is to collect the money granted to Digital Domain.