Ex-Peace Arch Chief Cleared of Fraud Charges

TORONTO: The U.S. Attorney’s Office has cleared former Peace Arch CEO Gary Howsam of bank fraud charges, some 18 months since his arrest in Los Angeles.

The charges related to film financing deals with Comerica Bank in 1999 and 2000. Howsam was arrested while on his way home from L.A., where he had been attending the American Film Market in November 2007, and subsequently charged with one count of bank fraud and six counts of falsifying information on loan documents. Howsam had been implicated by his former colleague Harel Goldstein, who was convicted on similar charges. The case was dropped after Howsam and his attorney, Donald Randolph, were able prove that Goldstein lied to prosecutors in order to implicate Howsam and receive a reduced sentence.

"It is a very rare event for the U.S. Attorney’s Office to move to dismiss an indictment after 18 months of litigation," said Randolph. "However, in this case, the government agreed to carefully review the compelling evidence uncovered by the defense investigation showing that the accusations against Gary Howsam were false…We have asserted Gary’s innocence from the beginning, and we are gratified that he has been cleared of all charges. Dismissal was the right result."

"Dealing with this matter has been most difficult," Howsam said in a statement. "For eighteen months, my family and I have fought to clear my name and reputation against the false allegations leveled against me. I am deeply saddened by the impact that this incident has had on my family, my associates and my former colleagues. I’m thankful that I have finally been cleared of these charges."

He continued: "I have faced personal and professional challenges as a result of this ordeal; however, I’m happy now to put this matter behind me and channel my energies and passion back into my work."

Howsam was placed on administrative leave at Peace Arch after his arrest and was succeeded on an interim basis by Jeff Sagansky and then by Gerry Noble. While at Peace Arch, he had served as exec producer on the first two seasons of Showtime’s acclaimed The Tudors and rapidly built up the company’s domestic and international capabilities. Canadian press reports indicate that he is now working on a film project based on the life of disgraced Washington lobbyist Jack Abramoff.