Mugalli’s complaint says Kerouac opportunistically pegged Herron as the person who would provide “the veil of legitimacy he needed” to procure high net-worth individuals and “market himself as an established filmmaker.” To supplement this, Kerouac set up an IMDb page claiming he had collaborated with renowned actors such as Richard E. Grant, and Jeremy Irons, “among many others.”.
Kerouac is accused of stealing at least $500,000 from investors in the film, half of which came from Mugalli, according to his complaint, which says Kerouac’s actions displayed “a high degree of moral turpitude,” as well as “wanton dishonesty.”.
However, Mugalli did agree to invest $250,000 once Kerouac told Mugalli he expected to later sell the rights to the finished film for a projected $24 million, the complaint states.
He claimed Kerouac caused “numerous harms,” and that Mugalli and his company now “seek justice and compensation... for damages caused by the fraudulent misrepresentations and self-dealings of Mr. Kerouac.” Mugalli “remains committed” to completing the unfinished documentary, the lawyer added.
But, during a follow-up meeting in Italy, Kerouac asked Mugalli to kick in $7.2 million for the project, which Mugalli was hesitant to fork over.