In a shocking turn of events, David Begelman, the esteemed studio president of Columbia Pictures, has been discovered to have forged checks.
The scandal came to light when actor Cliff Robertson received an IRS Form 1099 from Columbia, claiming he had received $10,000 in income from the company in 1976.
However, Robertson never actually received the money.
Upon further investigation, it was revealed that Begelman had written a check to Robertson, forged the actor's signature, and cashed the check himself.
This revelation has sent shockwaves through the industry.
The incident unfolded on February 25, 1977, when Robertson, who had previously been represented by Begelman, received the suspicious IRS form.
He quickly realized that his endorsement on the check in question had been forged.
The handwriting was clearly not his, and the check was signed incorrectly as “Cliff Robertson” instead of his full name, “Clifford T.
Robertson.”
Outraged by the forgery, Robertson promptly reported the incident to the police, setting off a chain of investigations.
The Los Angeles and Beverly Hills Police departments, along with the Federal Bureau of Investigation, delved into the matter, led by detective Joyce Silvey.
They confirmed that the $10,000 check was indeed a forgery and interviewed the manager of the Wells Fargo Bank branch where the check had been cashed.
The manager revealed that Begelman, now the head of Columbia's motion picture division, had exchanged the check intended for Robertson for traveler's checks.
However, it was peculiar that Begelman cashed the check even after parting ways with Robertson on bad terms.
Their business relationship had ended acrimoniously when Robertson fired Begelman for siding with a film company against him.
As the scandal unfolded, Columbia allowed Begelman to go on a leave of absence and initiated its own investigation.
Attorney Peter Gruenberger, known for handling sensitive inquiries, led the internal investigation with a team comprising members from the law firm Weil, Gotshal, and Manges, as well as Price Waterhouse.
The team meticulously examined around twenty thousand checks and discovered that Begelman had embezzled an additional $65,000 through forgery.
They also uncovered evidence of Begelman misusing expense accounts and using company cars for personal purposes.
Gruenberger presented his findings to the board, but to his surprise, some members expressed hostility towards him and questioned his objectivity.
However, Columbia's president and CEO, Alan Hirschfield, accepted the report and made the decision to terminate Begelman.
The chief counsel, Robert Todd Lang, privately agreed with Hirschfield, although his legal opinion remained neutral.
This gave the board the option to retain Begelman, leading to a dispute between Hirschfield and the board led by Herbert Allen, Jr. Stark, a prominent independent producer working with the studio, played a significant role in persuading the majority of board members that Begelman was indispensable to Columbia's success.
Ultimately, the board decided to retain Begelman and challenged Hirschfield's decision.
Meanwhile, Robertson's anger towards Begelman led him to give an interview to The Washington Post.
Other media outlets also conducted their own investigations, with New West Magazine unearthing an old accusation of theft against Begelman involving actor-singer Judy Garland's money.
It was also revealed that Begelman's claim of graduating from Yale Law School was false, tarnishing his credibility further.
The scandal gained even more attention when syndicated columnist Liz Smith dedicated a column to the story and interviewed Robertson herself.
Subsequently, on February 28, the U.S. Securities and Exchange Commission launched its own investigation.
Although no federal law violations were found, the SEC's involvement marked a turning point.
The Columbia board began to realize that Begelman could no longer effectively work for the company, leading to his resignation to become an independent producer.
Hirschfield, having lost the board's confidence, was also fired in July.
Begelman eventually pleaded no contest to the forgery and embezzlement charges and received a sentence of community service.
As part of his community service, he produced the documentary “Angel Dust” in 1979, highlighting the dangers of the drug PCP.
However, by the mid-1990s, Begelman had fallen into financial ruin and declared bankruptcy.
In 1995, he was tragically found dead in a Los Angeles hotel room, an apparent victim of suicide.
The David Begelman check forgery scandal remains a dark chapter in Hollywood's history, exposing the corruption and misconduct that can occur even within the highest ranks of the industry.
The incident serves as a reminder of the importance of integrity and trustworthiness in the world of filmmaking.
