Media Insider: The upscale Los Angeles life-style of fraud-accused Stripe Studios managing director Alex Breingan

The Serious Fraud Office has laid 33 expenses towards Breingan, referring to virtually $15 million in private and non-private funding for 13 TV reveals, produced below the banner of his Auckland-based Stripe Media (Stripe Studios) firm, and related corporations.

The SFO alleges he made false representations and used cast paperwork.

The expenses comply with a two-year investigation by the company and work by receivers BDO, which uncovered money owed of greater than $20 million in addition to “irregularities” within the accounts of the failed Stripe corporations.

There are actually questions over whether or not Breingan will return to New Zealand voluntarily to seem in court docket, or face extradition with assist from Interpol. No date has been set for his first look.

Until then, Breingan lives an intriguing new life in Los Angeles – seemingly working to ascertain himself within the manufacturing business there, whereas residing in Sunflower Court with a lady who has been going through her personal monetary and authorized points, together with a case involving her former husband and alleged out-of-pocket traders.

‘The charmer’

The NZ Herald has been investigating Alex Breingan and Stripe Studios for greater than two years. Breingan was a widely known and usually widespread character within the manufacturing sector, seen by many as a pure charmer, with a present of the gab.

That’s borne out in his capability to draw a few of New Zealand’s high display screen and sporting expertise for his reveals, together with former All Blacks Israel Dagg and Stephen Donald. Those who know Breingan say he adores mixing with celebrities.

Two of his largest worldwide collaborators have been Baywatch and Knight Rider star David Hasselhoff and Netflix comic Iliza Shlesinger, who filmed separate travel-comedy reveals for Stripe in 2023. But each initiatives turned bitter when Stripe Studios collapsed in 2024. The pair are among the many collectors, though their reveals have been subsequently rescued thanks to a different manufacturing agency, Perpetual Entertainment.

UK-born Breingan got here to New Zealand in 2002, and initially co-founded Choice TV (which later grew to become Eden) and later Stripe Media and varied related corporations, most of which have been particular car corporations hooked up to particular productions.

He has been chargeable for reveals equivalent to The Circus, Rich Listers and Great Southern Truckers. He additionally produced the TV3 morning chat present The Cafe from 2016 to 2020.

Breingan lived in a house in Whangaparāoa, north of Auckland, along with his now ex-wife, Rachel Hart, a former TV3 reporter who, in more moderen years, has constructed a robust social media following below the moniker One Handed Baker. The couple have two youngsters.

The couple’s former dwelling featured prominently on a Stripe-produced present, known as the 100 Day Renovation, which screened on Sky Open (previously Prime) in 2019.

The marriage is now over, and the house, which was not listed below Alex Breingan’s title, was offered in September final yr for $2.05 million.

Hart has not responded to messages from the Herald this week or beforehand.

On Facebook on Wednesday – the identical day that the SFO introduced expenses towards her former husband – she wrote: “New Year, new house, new start, new bookcase (!)

“Just to be very clear, I officially – and legally left this club a long time ago.”

Accompanying her put up was a photograph of a collection of books in a bookcase, with titles On Top of Everything, I’ve Got Your Number, The Hideaway, The Spanish Love Deception and… The Marriage Club.

The lure of Los Angeles

Breingan made a number of journeys to Los Angeles in 2023, telling business friends that he was trying to promote Stripe reveals and initiatives to abroad studios. It is known he normally stayed at The Hollywood Roosevelt, an upmarket resort on Hollywood Boulevard.

The New Zealand Film Commission (NZFC) alerted the SFO in November 2023 to what it known as considerations about an Auckland tv studio’s functions for the Government’s Screen Production Rebate scheme.

NZ Herald inquiries later revealed that the SFO was investigating Stripe Media.

In laying the 33 expenses towards Breingan, the Serious Fraud Office has alleged he made false representations and used cast paperwork to acquire greater than $4.3 million in Government-funded rebates and $10.2 million in lending for 13 TV initiatives.

Breingan has but to remark.

According to an earlier liquidator’s report into Stripe Media, he claimed a funding settlement U-turn by the New Zealand Film Commission was responsible for the corporate’s liquidation – however the NZFC has beforehand mentioned it “rejects that it is responsible in any way for the financial circumstances” of the corporate.

The NZFC administers the display screen manufacturing rebate scheme on behalf of the Government. The scheme permits producers to obtain money again for cash already spent, offered their productions meet a variety of standards.

The scheme – providing a 40% return for home productions and 20-25% for worldwide initiatives – is designed to encourage extra movie and TV work in New Zealand.

At some stage between November 2023 and mid-2024, and amid publicity about Stripe’s collapse, Breingan moved completely to Los Angeles, initially residing in an condominium, earlier than assembly Darci Penn, and shifting into her dwelling in Sunflower Court.

A brand new movie firm

It is known that Darci Penn and Alex Breingan have been a pair in Los Angeles by mid- to late-2024.

They now dwell collectively in a house that has been extensively renovated over the previous decade, earlier than Breingan arrived on the scene. It is taken into account probably the greatest and most immaculate homes on the road, with a possible worth of between $US1.6m-$US2m.

The couple share two high-end luxurious autos.

Penn has 4 younger youngsters from her marriage to her now former husband, Andrew Penn.

The Herald has been informed Breingan and Penn appear to dwell a “carefree” life-style, with the usage of childcare and occasional getaways.

A neighborhood martial arts membership has video footage of the pair watching and filming an end-of-year awards ceremony.

Breingan remains to be believed to be working within the manufacturing business – it’s understood he has arrange a manufacturing firm known as 2nd Hour Films.

The IMDB film database lists Alex James because the founding father of 2nd Hour Films. James is Breingan’s center title.

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On its web site, 2nd Hour Films describes itself as a Los Angeles-based manufacturing firm “developing bold, original film and television projects with global appeal”.

Earlier this week and up till Friday morning, 2nd Hour Films had 12 productions listed on its homepage, that includes stark advertising promotions for TV reveals and flicks with names starting from Deceit, Faceless, The Circus of Death, Hospicetality, Boss Bitches and The Real Karate Kids.

Several of the pictures had been generated by ChatGPT, in keeping with their screengrab file names.

Many of the listed reveals and flicks didn’t but seem to have been filmed, produced or launched.

At least two that did have casts hooked up have been linked to a different movie firm and mentioned to be in pre-production, with Alex James listed as a producer.

Later on Friday morning – and after the preliminary publication of this Herald article – the 2nd Hours Film web site was selling just one movie, Hospicetality.

2nd Hour Films says its workforce’s “extensive experience” consists of collaborations with NBC Universal, Netflix, Warner Bros Discovery, CBS, Legendary Entertainment, and Paramount Pictures, “delivering premium storytelling across genres”.

“With a proven track record of Emmy Award nominations, film festival success, and the production of over 1000 episodes of television, [the] 2nd Hour Films team has an eye for creative excellence and commercial results.”

Alex James’ biography on IMDB states he’s a movie and TV producer, author, and govt producer “known for creating original formats and compelling screenplays”.

“With multiple independent films in production and a slate of scripted and unscripted series in development, he is in demand for his creative vision, strong storytelling, and expertise as a development producer.”

On Instagram, 2nd Hour Films has one put up from November 2024 – one other promotional picture for The Circus of Death and the promise of it “coming soon”. Apart from one other reference on the corporate’s web site, this film is nowhere to be discovered.

The Instagram account had 4 followers earlier on Friday morning. One of them was Penn, however her title was not there later within the morning.

The account additionally follows three folks. Penn stays a kind of three.

Darci Penn’s voluntary chapter listening to

Darci Penn has been preventing her personal authorized and monetary battles in recent times.

In 2024, her by-now-ex-husband stood accused by California’s Department of Financial Protection and Innovation (DFPI) of being concerned within the unlawful sale of securities to a gaggle of six traders, by which he raised at the very least $US622,275.

According to at least one DFPI doc, Darci Penn was initially accused by the DFPI of helping her husband in soliciting potential traders by cellphone calls and in-person conferences, however she denied this and efficiently and legally fought to cease any orders towards her.

According to the DFPI, Penn’s ex-husband offered traders with a “private investment agreement” that indicated he would use the proceeds from the securities to amass, maintain and promote artworks.

He was accused by the DFPI of telling traders that their funding was “fully guaranteed” with a 40% return over 19 months; that they’d obtain semi-annual funds; and that their funding had “zero risk”.

“In fact, none of these statements were true,” says a DFPI doc.

“At least five of the investors never received any payments. One investor did receive a portion of the original deposit after asking for a refund, but received no profits. At least six investors have made multiple requests for a refund … but have been unsuccessful.”

In July 2024, Darci Penn filed for a voluntary Chapter 7 chapter petition, looking for to guard her share of the worth of the Sunflower Court dwelling.

According to a Bankruptcy Court doc, she and her husband separated in January 2023, and she or he filed a petition for his or her marriage to be dissolved in April 2023.

According to the doc, a state court docket had awarded her month-to-month youngster help of $41,000 and month-to-month spousal help of $40,000 to start in June 2024.

But she informed presiding choose Victoria Kaufman that her ex-husband had not paid the quantities and “she doubts he ever will”, in keeping with the court docket doc.

She is looking for to guard her share of the worth of the house that she nonetheless co-owns together with her former husband. Some of the burnt traders have been preventing this.

The chapter case offers an perception into Penn’s life-style – and arguably that of Alex Breingan.

Penn informed the court docket that her month-to-month earnings was $946.83, from her job as a part-time workplace administrator at an insurance coverage company in Calabasas. She mentioned fulltime employment could be unattainable whereas elevating 4 youngsters.

She informed the court docket she owned “minimal personal property totalling less than $15,000″.

“Debtor [Penn] estimated her transportation expenses to total $400 monthly. Debtor further estimated her monthly childcare and children’s education costs to total $4600 monthly. According to Debtor, her mother owns and pays for the car which Debtor drives and pays the tuition expenses for Debtor’s children.”

Penn denied that she had “substantially assisted” her ex-husband within the securities scheme and mentioned her curiosity within the Sunflower Court dwelling was “reasonably necessary” for the help of her and her youngsters.

A choice is known to be pending.

‘Alex wishes to move beyond all the negative online media’

Alex Breingan has repeatedly refused to be interviewed by the NZ Herald over the previous two years. He has accused the Herald of false and defamatory reporting, with out ever citing any particular errors.

Last September, a US-based lawyer wrote to the Herald, asking for 3 articles to be eliminated. The Herald declined the request.

The lawyer appearing for Breingan mentioned his firm was appearing as “negotiators and facilitators”.

“While we support the media and free speech rights, we believe there are additional facts and/or context, of which you may be unaware, that would change the nature of the story, result in potential inaccuracies, or inadvertently lead readers to an inaccurate conclusion,” mentioned the lawyer, John Lambert.

“Furthermore, Alex is suffering ongoing, negative impacts on their personal and professional lives as a result of the media on this topic and the ease with which it is discoverable via internet search.

“Alex wishes to move beyond all the negative online media. While certain information should be archived, it is no secret that the internet and technology have made it increasingly difficult to move beyond any type of negative associations, regardless of accuracy and veracity, no matter how small.”

The regulation agency mentioned yesterday it was not representing Breingan.

The Herald has sought to once more converse to each him and Penn this week, with up to now no response.

BDO ‘welcomes’ expenses

The receivers of Stripe Media informed the Herald that they welcomed the motion being taken by the Serious Fraud Office.

“In the course of carrying out their statutory duties, the receivers and their team completed an investigation, identifying a significant number of irregularities across the Stripe Media Group and provided comprehensive reports and information … to the Serious Fraud Office and the Registrar of Companies,” mentioned Rees Logan and Andrew McKay of BDO.

“Insolvency practitioners have statutory obligations to report suspected offences, and in circumstances where financial redress for creditors cannot be readily achieved, it is appropriate and reassuring to see serious action being taken by the relevant authorities.”

MBIE, in the meantime, says it’s awaiting the result of the SFO case “before further pursuing” Breingan’s prohibition to be an organization director.

“While MBIE’s investigation remains ongoing, should Mr Breingan be convicted of the charges laid by the SFO, he would be captured by the provisions of section 382 of the [Companies] Act and prohibited for five years from the date of conviction.”

Editor-at-Large Shayne Currie is considered one of New Zealand’s most skilled senior journalists and media leaders. He has held govt and senior editorial roles at NZME together with Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.