The beleaguered Seven Arts Entertainment lost an additional 35% of its stock value today, closing at $0.0011 a share. The loss comes after the NASDAQ-traded stock plunged 15% on Friday. The company’s shares now sell for about one-tenth of a penny – down from a 52-week high of $17.50. As reported here Monday, Seven Arts Entertainment, in its 2013 corporate presentation, stated that its stock recently had sold for as high as $517.84 a share – which might have to do with the fact that in February the company announced a 1-for-100 reverse split on its common stock. Peter Hoffman, who founded the company, is under indictment in Louisiana for allegedly taking part in a “fraudulent tax credit scheme” in which federal prosecutors say the “fraudulently submitted materially false and misleading documents and information” to the state of Louisiana “in order to receive infrastructure tax credits.” Hoffman, who flatly denies the allegations, says his attorneys will file a motion to dismiss the charges Wednesday. Hoffman stepped down as CEO of Seven Arts Entertainment last year, though he remains its chief counsel and a member of its board of directors.
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