Earlier on Monday, the Times Picayune reported that “nearly $1 million in tax credits designed to spur on Louisiana's film industry instead offset the construction costs of Mardi Gras floats built in 2006 by Blaine Kern Artists, according to a report from the legislative auditor's office. The studio claimed the construction of the floats was part of the production cost for "Blaine Kern's Mardi Gras: Building of the Greatest Free Show on Earth," a documentary that was never released for distribution.”
Late Monday afternoon, Blaine Kern Sr. issued a statement that
stated in part, “Through my counsel I alerted the District Attorney of Orleans Parish and the Legislative Auditor of this fabrication and mis-application and I fully cooperated with them in providing over 1500 documents that my counsel located, all of which pointed to the fact that the tax credits applied for and sold by LEAP were not based on any legal or legitimate basis.”
The press statement issued Monday evening by Blaine Kern Artists said that Blaine Sr. is using false, inaccurate and misleading statements and further said:
Blaine Kern Artists Statement in Response to Blaine Kern Press Release:
It is a shame that Blaine Kern, Sr. has elevated an ongoing family feud to the level of a state legislative audit. Blaine is using false, inaccurate and misleading statements regarding the production of the documentary film to harm his own company and his children. Contrary to Blaine's accusations: Blaine Kern Artists (BKA) did receive proceeds from the tax credits; Barry Kern does not own any interests in LEAP; and Blaine was aware of the making of the film, in fact, he was featured in it. BKA issued a lengthy, detailed response to the Legislative Auditor's report that clearly establishes the legal basis for the issuance of tax credits.