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Saints sue film company over tax credits

On the same day that former Saints long snapper Kevin Houser landed on his feet by signing a deal with the Seahawks, word also has emerged that Houser and others with ties to the Saints are pursuing legal action against the film company in which nearly $2 million was invested, and possibly lost.

According to the Associated Press, Houser, linebacker Scott Shanle, and former punter Mitch Berger have filed suit seeking the return of $468,750 that was invested under the assumption that Louisiana Film Studios, LLC, would apply for and receive income-tax credits that, as a practical matter, would result in an expected return of 33 percent.

As it turns out, the company never applied for the tax credits.

Specifically, an involuntary bankruptcy petition has been filed against the company.  Previously, chief executive Wayne Read said that the money would be repaid, or that the tax credits would be obtained.  If Louisiana Film Studios, LLC, truly has become insolvent, the plaintiffs and other creditors likely will be hard pressed to get the bulk of their money back via a Chapter 11 proceeding.

Others who invested money in the company will be able to join the action.  Coach Sean Payton, quarterback Drew Brees, and former Saints quarterback Archie Manning are among the investors.

Houser was abruptly cut by the Saints not long after word of the apparently failed investment arose, prompting speculation that Houser’s role in recruiting others to sink money into the project triggered the moveHarsh comments from tight end Jeremy Shockey, another player who invested money in the company, served only to confirm the notion that Houser likely had worn out his welcome after nine years with the team.

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8 Responses to “Saints sue film company over tax credits”
  1. MasterShake says: Jul 23, 2009 11:14 PM

    Jeremy Shockey and Saints, will only ever be associated, in the NFL. Someone honestly tries to help his “peeps” in an investing venture ends up screwing the pooch, (to death, sorry Taco Bell dog) and dickholes like Shockey blast him in public. I hope he’s not in the lawsuit or is banned because of the things he said. A hillbilly with money is……….well, a hillbilly.
    Now to the post,
    I hope they win.

  2. Buschman says: Jul 23, 2009 11:31 PM

    What the hell kind of tax credits was a film company entitled to and why would it create a 33% return to investors? I guess we’re just printing money for the stimulus package

  3. Kleptocracy says: Jul 24, 2009 2:46 AM

    You get tax exempt because it is labeled as a securities investment under Reg D, rule 505 where you can invest up to $5,000,000. They are all Saints players/coach who were invested, so it had to have involved no general solicitation. unlimited number of accredited investors (they all meet the criteria) and max 35 of uncredited (most likely, none)
    In a nut-shell, meet these requirements, fill out all the forms and turn them in when you are supposed to, there is tax exemptions.

  4. firesnake says: Jul 24, 2009 5:45 AM

    I had the impression that NFL head coaches needed to be smart, but Sean Payton continues to prove me wrong.
    I hope he interprets the stats of his team better than the 33 percent …

  5. houskat says: Jul 24, 2009 8:39 AM

    Coaches and Players should not Be investing monies together if its going to affect their working relationship,Now one Player has been cut.WTF,the Saints don’t need this kind of crapy attention.Get your mind-set focused on playing football,I could care less about coaches & players losing a few bucks…..boo-hoo!

  6. Hype says: Jul 24, 2009 9:37 AM

    So, let me get this straight. Some really rich guys tried to find a tax shelter. In doing so, found a company which lost their money. Now they are going to sue said company, which will file for bankruptcy protection. In doing so said players won’t get a nickle back. Sorry if I don’t shed a tear. In the words of “DevilsAdvocate” Who gives a flying fart in space.

  7. danj0306 says: Jul 24, 2009 9:51 AM

    Im quite happy Kevin landed a new job. I didnt know him well, but I went to school with him. He is one of the nicest guys on the planet. Definatly didnt deserve to have his life turned upside down for this… and PS… Jeremy Shockey is a prick.. I didnt go to school with him and I know that!!!

  8. fbfan says: Jul 24, 2009 10:02 AM

    “bad people bring bad karma.”
    Shockey is still on the roster so I’m sure the Saints are still in line for lots of bad karma.

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