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Paris Hilton film trial rooted in Ponzi scheme

By Staff | Jul 9, 2009

MIAMI (AP) – In an odd intersection of showbiz and securities fraud, proving a claim that Paris Hilton was a lousy pitchwoman would benefit investors jilted by a Ponzi scheme she had no part in.

A federal lawsuit set to go to trial Thursday against Hilton contends she didn’t do enough to promote the 2006 sorority hijinks movie “Pledge This!” and seeks about $8 million in damages from Hilton and her company, Paris Hilton Entertainment Inc.

One of the main investors in the box-office bomb was once a high-flying concert and theater promoter from Miami named Jack Utsick, who was listed as one of the movie’s producers. When the admittedly bad movie lost money, his now-defunct Worldwide Entertainment Group took a financial hit.

But it’s not Utsick who’s suing Hilton. Rather, the lawsuit stems from an effort to repay people ripped off in what federal securities investigators say was a $300 million Ponzi scheme hatched by Utsick. Hilton’s work nothing to do with the scheme.