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Saints lose money in tax credit investment

Associated Press - July 2, 2009 8:54 PM ET

NEW ORLEANS (AP) - At least 16 people associated with the New Orleans Saints, including coach Sean Payton, quarterback Drew Brees and Hall of Famer Archie Manning, are among investors who lost $1.9 million.

Kevin Houser, cut Monday as the team's long snapper after eight years, said Thursday he and at least 26 others bought what they thought were state film industry tax credits from Louisiana Film Studios in suburban New Orleans. A state official, however, says the studio that offered the credits never applied for them.

The Associated Press obtained a copy of 1 of the proposals from a person whose client was approached with the offer. A list of investors accompanied the proposal -- including their investment totals -- and identified 27 people. The document put the total amount of investments at just under $1.9 million.

Among them are defensive lineman Charles Grant, with a $425,000 investment; Brees, $100,000; Payton, $144,000; former punter Mitch Berger, $250,000; and tight end Jeremy Shockey, $80,000.

Saints spokesman Greg Bensel said the team would have no comment.

The news was first reported by The Times-Picayune of New Orleans.

Houser, who says he invested $125,000, said investors were told if the credits were not delivered by March 31, "the money would be returned" to them. Houser says the money hasn't been returned by studio chief executive Wayne Read and demands for repayment have gone unanswered.

Read could not be reached for comment Thursday but he told The Times-Picayune that the company was not selling tax credits but was taking money with a pledge to provide a return in the form of tax credits. But the head of the state office that promotes film industry development told the AP the studio didn't have the credits to offer because it never applied for them.

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