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CBS/Paramount sues to stop Axanar

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...'If' I were to be accurate in my conjecture I'd call it a very nice 'leak' with plausible deniability built right in.

Lying in the critical moment right when the topic is fresh in the news seems to have been used a few times here - both this statement towards the press "too soon", picked up without that qualification; and omitting the confession of IP theft in the statement to the donors.

Fits right in with the endless river of twisty words concealing dangerous revelations / suggesting untrue interpretations at the hotspot moments all along.

I wonder how many people would watch Trek if the principal characters deliberately slimeballed their way through the stories. Being above doing this really is a core part of the Trek mythos.

Shows how far Axanar is from representing 'the soul' of Trek.
 
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S Corporation executives and shareholders are employees in the eyes of the IRS if the contribution is more than minor. I'm no expert in this, but if Alec tried to 1099 himself, he might be in for a problem in not withholding his own taxes, since Alec is listed as the CEO of Axanar Productions:

https://www.irs.gov/businesses/smal...employees-shareholders-and-corporate-officers
S Corporation Employees, Shareholders and Corporate Officers
Who is an Employee?
The definition of employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code include corporate officers. When corporate officers perform a service for the corporation and receive or are entitled to payments, those payments are considered wages.

The fact that an officer is also a shareholder does not change this requirement. Such payments to the corporate officer are treated as wages. Courts have consistently held S corporation officers/shareholders who provide more than minor services to their corporation and receive, or are entitled to receive, compensation are subject to federal employment taxes.

If an officer does not perform any services or only performs minor services and is not entitled to compensation, the officer would not be considered an employee.

I really think this might be something with legs. Alec said Axanar "has no employees, they are all 1099". According to the above, he cannot do that, he and other officers of the corporation (if there are any) who got salary in exchange for nontrivial contributed labor have to have withholding taken out like normal employees.

Any legal opinions?
 
As I understand it, any professional actors or behind-camera technicians may not be, per union rules, sub-contractors but rather must be paid employees by the production company.
 
As I understand it, any professional actors or behind-camera technicians may not be, per union rules, sub-contractors but rather must be paid employees by the production company.
That's not a determination based on their union status but on definitions set by the IRS.
 
I really think this might be something with legs. Alec said Axanar "has no employees, they are all 1099". According to the above, he cannot do that, he and other officers of the corporation (if there are any) who got salary in exchange for nontrivial contributed labor have to have withholding taken out like normal employees.

Any legal opinions?
Internal Revenue and California Revenue probably have different views of what constitutes a 1099 worker. Even if it is all innocent, they may want to investigate anyway. And neither agency will give a damn what the press or Trekkies say or want.
 
Internal Revenue and California Revenue probably have different views of what constitutes a 1099 worker. Even if it is all innocent, they may want to investigate anyway. And neither agency will give a damn what the press or Trekkies say or want.

The trick is to get them to actually budge. There's been lots of noise made about breaking down the doors of various state agencies (the AG, among others) and I know people have sent letters and forms to various places, but is there any indication anyone out there is paying any attention?
 
Another great interview with Christian Gossett about the Axanar settlement:

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The trick is to get them to actually budge. There's been lots of noise made about breaking down the doors of various state agencies (the AG, among others) and I know people have sent letters and forms to various places, but is there any indication anyone out there is paying any attention?
Obviously, I can't speak for any of the agencies involved, but I'm pretty sure that they prioritize complaints by the standing of those making the complaints. In other words, a non-interested third party complaining about whether taxes are owed or whether a worker should be a 1099 contractor or an actual employee is lower priority than someone with standing making the complaint. In other words, if someone paid as an independent contractor complains they should have been entitled to benefits because they were actually an employee, that complaint gets higher priority.

Standing is everything.
 
Christian summed it up: they raised over a million dollars to make a film and three years later the money's gone and there's no film. You can't put it any more clearly than that.
The interesting thing is:
Many here (myself included) agreed with Mr. Gossett in that Alec Peters 'endgame' for all this was keeping the studio. What I never understood about that it WHERE Alec thought the money to maintain and run the studio was going to come from. Hell, remember that Jonathan Lane tried a separate Indegogo campaign (supposedly without **COUGH <Bullshit>** Mr. Peters knowledge) to just help Alec Peters 'pay the rent' - and if I recall Dennis Bailey was the only person who pledged a total of $5 just so he could comment and tell Jonathan and Alec his view; and in the end said Campaign was taken down within 24 hours with no real pledges and a bunch of "where'd the original money go?" comments.

Does Alec think he's such an amazing Con man that he'll somehow find someone to continue to foot the bill - and he'll somehow get more porn producers to pay him to rent his 'studio'? What is Alec smoking - because I want some. ;)
 
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...In other words, if someone paid as an independent contractor complains they should have been entitled to benefits because they were actually an employee, that complaint gets higher priority.

Standing is everything.

Totally agree. Not saying go try to get the agencies to take action, that's between them and Axanar.

My thinking is more along the lines of when Axanar reports to donors that the "true" financials are 1099 (as Alec has said) not employee taxable wages, this info could be used to raise a flag about the "truth" of what was presented.
 
...Many here (myself included) agreed with Mr. Gossett in that Alec Peters 'endgame' for all this was keeping the studio. What I never understood about that it WHERE Alec thought the money to maintain and run the studio was going to come from....

Maybe the midgame was the studio and the endgame was jumping into a Trek showrunner role and leaving the studio to others except as a shareholder.
 
Christian summed it up: they raised over a million dollars to make a film and three years later the money's gone and there's no film. You can't put it any more clearly than that.
The interesting thing is:
Many here (myself included) agreed with Mr. Gossett in that Alec Peters 'endgame' for all this was keeping the studio. What I never understood about that it WHERE Alec thought the money to maintain and run the studio was going to come from. Hell, remember that Jonathan Lane tried a separate Indegogo campaign (supposedly without **COUGH <Bullshit>** Mr. Peters knowledge) to just help Alec Peters 'pay the rent' - and if I recall Dennis Bailey was the only person who pledged a total of $5 just so he could comment and tell Jonathan and Alec his view; and in the end said Campaign was taken down within 24 hours with no real pledges and a bunch of "where'd the original money go?" comments.

Does Alec think he's such an amazing Com man that he'll somehow find someone to continue to foot the bill - and he'll somehow get more porn producers to pay him to rent his 'studio'? What is Alec smoking - because I want some. ;)
I agree, Mr. Gossett summed it up succinctly. Excellent interview. As to AP, hoping for endless fundme campaigns, private merchandising store, film school, shady backroom deals, all to endgame a studio media empire based on CBS/P's IP. That's blown up in his face so he's stuck with a money pit studio building lease while alienating people instead of having a legitimately honest "calling card to the industry."
 
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Totally agree. Not saying go try to get the agencies to take action, that's between them and Axanar.

My thinking is more along the lines of when Axanar reports to donors that the "true" financials are 1099 (as Alec has said) not employee taxable wages, this info could be used to raise a flag about the "truth" of what was presented.
I raised this issue in my analysis of the Annual Report a year ago, and most recently in response to Peters' "explanation" of his financials.
 
In the end, I really think the 'Axanar' (2X15 minute) feature (if it actually gets done) will end up being:

- The unused footage from the "Axanar Heroes" vignette (that was filmed on the ST: New Voyages set years ago) with Alec doing VO as Garth thinking and reflecting back on the 'Battle'.

- As much of the Tobias Ricther VFX footage (I remember it being said the majority of it had been generated and delivered) as they can jam in.

- Any raw unused footage and VO filmed/recorded from the original "Prelude to Axanar" shoot (We've seen some already in the follow up trailers.)

- A ham-handed tie in that somehow uses the 'Vulcan Scene" as hey, can't let something filmed with Gary Graham as Soval in full costume and makeup go to waste, no matter how much it would work for a 'flashback sequence".

It'll be interesting to see if the above turns out to be the case. ;):barf:

Their plan to pay future rent involved:

1. Subletting the studio to other film makers.
I know, but with all the other studios in the area (that are up to code and have a track record) ; I seriously doubt Alec will find clients willing to pay to use his wherehouse.

2. Using the studio for a film school, staring Richard Hatch (and Alec Peters).
Yeah, but lets be honest, the ONLY course Alec Peters would have any experience in teaching would be: "How to crowdfund 2 million and get yourself sued by two major Hollywood studios"
^^^
I don't see film students lining up for that one. And after everything that's happened, I doubt even Richard hatch would be on board for something like what Alec Peters originally described. There are plenty of reputable film schools and acting classes in the area as well.

3. To explore the possibility of making more independent Star Trek films.
^^^
I'm sure that idea is dead and thoroughly buried at this point.

4. To make other independent, non-Star Trek films, paid for through crowd funding. Star Trek Axanar was meant to serve as an advertisement of what they can achieve to potential backers.
^^^
Again, I don't think there are enough 'Axanar Faithful' to keep donating to Mr. Alec "He who promises but never delivers" Peters.

So yeah, I still wonder what his CURRENT plan is to 'keep' his studio. ;)
 
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