Tag Entertainment

Tag Entertainment (sometimes titled TAG Entertainment) was largely founded by Steve Austin and John T. Botti (John Botti), Director and became a publicly held film production company formerly headquartered in Santa Monica, California. The company was described as a centered producer of family films. Shares in Tag Entertainment (symbols TAGE and TAGEE) are no longer traded on any major exchange, due to Mr. Austin's cease and desist letter from the US federal government, owing to mail fraud.

Tag Entertainment and its subsidiaries were the subject of several government investigations. Founder and principal Steve Austin was scheduled to stand trial from charges directly related to his activities at his company and subsidiaries. This trial took place before Judge Margaret M. Morrow at Courtroom #780 of the Edward R. Roybal Federal Building and Courthouse. This courthouse is located at 255 East Temple Street in Los Angeles, California. There are approximately 800 victims nationwide who are covered by this federal prosecution. Austin pleaded guilty to all charges of a negotiated limited prosecution - during a pre-trial plea agreement that occurred a few days before this trial's commencement date of March 25, 2008. All the while, federal agents continued to search for value due these films' investments. The sentencing and restitution phase of the public trial was re-scheduled, then yet again re-scheduled this time during February 2009. The planned February fulfillment phase of the trial was delayed, and was later set to determine sentencing and restitution placements during these hearings to be concluding on July 13, 2009. The sentencing and restitution court trial date was sent back (this time by the judge of the case) to be during August, due to the plea bargain arrangements of the income issues of the films. The resolution of sentencing and restitution court date was subsequently rescheduled for August 13, 2009. All plaintiffs in the court litigation were eligible to give their victim impact statement before the court and directly to the defendant, Steven Kent Austin. This trial date had been delayed several times, and reset on about one week notice. About twelve victims testified in court, and the prosecuting attorney read aloud the statement of one investor who was unable to attend. Victim testimony is generally considered a major part of the court sentencing decision. Victims were given their time to testify during the culmination of the court trial proceedings, about the effect their hardship resulting from the activities of Steven Kent Austin and his associates. The public was welcome to attend the proceedings. Because of the co-operation, promise to diligently repay investors, and the remorse stated, Steven Kent Austin received in consideration a firm three year federal prison sentence with up to a fifteen percent reduction of sentence possibility, and a probation term then totally 20 years from the sentencing date of August 13, 2009. After serving his prison time, Austin's release into Federal Bureau of Prisons parole could be reduced to only three years of managed parole if he fulfills the terms of his federal court sentencing.

Music producer and convicted swindler Lou Pearlman was involved with the company as an executive producer. Pearlman is currently serving approximately 25 years in federal prison.

Many of the Tag Entertainment DVD releases are being sold under the labels of the companies which have now acquired the legal rights to them, such as MGM and Warner Brothers, without any Tag markings. The US Department of Justice plans to control accounts of the films covered by their prosecution of Steven Kent Austin. It is not completely clear how this trial will affect other people who were core employees at Tag Entertainment. There probably could be some financial effects. The federal government does plan civil prosecution of these matters. Affects of the admitted mismanagement of capital has and will have major effect upon the financials of Tag Entertainment.