A lawsuit by a filmmaker alleging fraud and deceit by the Hawaii Film Office has been settled, with his production being certified for the tax credits it was due.
Tim Chey, the producer of faith-based movies and a part-time Hawaii resident, had claimed in his suit that the state office cheated him out of his credits even though he did everything asked of him during the making of his movie called “The Islands.”
He also accused state Film Commissioner Donne Dawson and film office specialist Benita Brazier of religious discrimination in placing obstacles in the way of collecting the tax credits.
“The Islands,” scheduled to open in theaters March 15, tells the story of Hawaii island Chiefess Kapiolani and the bold demonstration of her new Christian faith. The production employed local actors and crew, as well as Hollywood veterans Mira Sorvino and John Savage, who were cast as missionaries.
Georja Skinner, chief officer of the state Creative Industries Division, which oversees the film office, confirmed that the suit was voluntarily dismissed by Chey last month and that his production received the tax credit certification after he provided the necessary documentation.
Skinner declined to discuss the amount of tax credits earned or the allegations in the lawsuit.
The state’s 20 percent motion picture income tax credit is based on a production company’s Hawaii expenditures while shooting in the islands.
To earn the refundable tax credit, productions must spend at least $200,000 in the state, make reasonable efforts to hire local talent and crew, and make “financial or in-kind contributions or educational or workforce development efforts” in support of the local film, television and digital media industries valued at 0.1 percent of Hawaii expenditures or $1,000, whichever is greater.
In his 133-page complaint, Chey claimed the production shot at Kualoa Ranch in November 2017 was over budget because of the tax credit snafu. He was seeking $100 million in punitive damages.
The effort experienced a number of other problems, too. In his suit, Chey described receiving death threats and conflicts with union members and Native Hawaiian activists “who threatened to shut down the production on numerous instances.”
He was sued by at least two people who worked on the movie, both of whom claimed they were not fairly compensated. Chey ended up countersuing one of them before dropping the complaint.
In a blog post during the litigation, Chey asked supporters to “please pray for the film as we’re under constant attack from the enemy for doing this story.”
As of Friday, the film’s website indicated Chey is still looking for investors in the film. “We’re aiming for a $35 million box office,” which “will ensure a 170 percent return on investment at least.”