\'Rebecca\' Producers Charge Fraud in $100 Million Lawsuit

The producers of the scuttled Broadway musical “Rebecca” filed a $100 million fraud lawsuit on Friday in state Supreme Court against Mark C. Hotton, a former stockbroker from Long Island on whom they were relying to raise $4.5 million of the show's $12 million budget.

The 20-page civil suit comes after federal authorities arrested Mr. Hotton on Monday and charged him with scheming against the “Rebecca” producers by making up phantom investors in the show in return for fees and expenses. According to the criminal charges, Mr. Hotton collected $60,000 from the producers without bringing in any money to the show. Mr. Hotton is now being held without bail, facing a maximum prison term of 20 years for each of two counts of wire fraud if he is convicted.

The producers' lawsuit said that Mr. Hotton “invented fictitious investors, forged financial documents, and orchestrated dozens of seemingly-independent communications” by e-mail from his fake investors t o the “Rebecca” producers about their intended financing. Mr. Hotton also provided signed agreements from his phantom investors pledging their money, written in different handwriting, the lawsuit states.

The alleged scheme fell apart last month after questions arose about the existence of one of the supposed investors, Paul Abrams, who was due to provide $2 million to “Rebecca” when he died, Mr. Hotton told the producers, after contracting malaria in Africa.

The “Rebecca” producers, Ben Sprecher and Louise Forlenza, are now trying to raise new money to mount the musical on Broadway or elsewhere next year. If they do not, their producing company will be liable for $7 million owed to investors and third parties.

In addition to Mr. Hotton, the producers are also suing his wife Sherri, who they say conspired with him. They are also suing one or more unknown individuals who sent email to a different investor who had been expected to put in $2.25 million to replace the lost Abrams money. The email raised questions about the quality of “Rebecca” and the judgment of Mr. Sprecher; the investor dropped out upon receiving the email, apparently believing his request for confidentiality had been breached. Mr. Sprecher's lawyer has a private investigation underway to identify the person or people who sent the email deriding “Rebecca.”

The complaint contends that if “Rebecca” does not open, the Hottons and the unknown e-mail writer will be “responsible for its destruction, along with at least hundreds of millions of dollars in lost profit damages.” “Rebecca” is based on the gothic mystery novel by Daphne du Maurier.

The lawsuit seeks $100 million in damages against the defendants. Mr. Hotton filed for bankruptcy last year listing $15 million in debts.

A version of this article appeared in print on 10/20/2012, on page C2 of the NewYork edition with the headline: ‘ Rebecca' Producers Sue Over Phantom Investors.