WEST HOLLYWOOD—On Tuesday, June 8, the U.S. Department of Justice announced that the CEO of two Hollywood reality television production companies has pleaded guilty to wire fraud for obtaining a $2 million business loan by misrepresenting his companies’ financial circumstances and using fabricated documents.
Jonathan Lee Smith, 40, of West Hollywood, was charged with wire fraud and has agreed to plead guilty to the felony offense. Smith faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, Smith owned and managed two production companies, Hoplite, Inc. and Hoplite Entertainment, Inc. Smith falsely represented that his two companies had accounts receivable of $3,348,000, and submitted falsified license agreements and other forgeries in order to convince a private lender to fund a $2 million loan.
According to court documents, Smith falsely represented that payment was imminent so he could convince the private lender to give him additional time to repay the loan. He also emailed a fake record showing a $100,000 wire payment from Hoplite, Inc. to the lender. The loan was never repaid, and Smith has agreed to pay $2 million in restitution.
Smith is expected to make his initial appearance in this case on July 6.
