Los Angeles County investigators have launched a criminal probe into spending by the Entertainment Industry Development Corp., the agency that handles film permitting on public property in much of the city and county.
Members of the District Attorney’s office searched the EIDC offices on Hollywood Boulevard on Wednesday night, taking files and financial records. A D.A. spokeswoman said the action was part of an ongoing criminal investigation.
The EIDC said the inquiry focused on its marketing expenditures, which it described as “monies used to promote Los Angeles to the entertainment industry” and admitted it has been in communication with the county’s Auditor General — the agency charged with reviewing the propriety of spending of county funds — for more than a year.
“We expect this issue to be resolved quickly and amicably,” the agency said.
The nonprofit EIDC was formed eight years ago by combining the city and county film offices with the goal of streamlining the permitting process to help put the brakes on runaway production. It said Thursday that it has cooperated fully with the Auditor General.
“The District Attorney has not accused EIDC of anything improper, and we will continue to work and cooperate fully with county auditors,” the agency said. “EIDC will continue to cooperate fully with this inquiry, and will continue to make all records available.”
The EIDC also declared that it was conducting business as usual. “Our focus remains on coordinating approximately 150 on-location film shoots daily in and around Los Angeles and ensuring we keep production and production-related jobs here at home,” it added.