2002 LOCAL NEWS: REAL-LIFE DRAMA FILM AGENCY SCANDAL LIVELY AS MOVIE.

Byline: Beth Barrett Staff Writer

One of the juiciest Hollywood scripts this year never made it to the big screen, but rather unfolded in a scandal surrounding the Entertainment Industry Development Corp. and its president, Cody Cluff.

In September, law enforcement investigators raided the EIDC's offices and two of Cluff's homes after learning that the quasi-public corporation had given tens of thousands of dollars in campaign contributions to elected officials on its board, as well as to causes, including $25,000 to fight secession movements.

A couple of months later, investigators from Los Angeles County District Attorney Steve Cooley's office were in Pittsburgh, where raids were conducted at the Pittsburgh Film Office and the home of its director, Dawn Keezer, who was linked romantically to Cluff in search-warrant affidavits.

But Cluff remained defiant, even after his executive committee told him to take a paid administrative leave.

Cluff has remained silent about his decision, but EIDC corporate lawyers said the 8-2 vote Nov. 22 was improper.

Most members on the executive committee - made up of Mayor James Hahn, three City Council members, four county supervisors and three industry representatives - were furious that Cluff didn't go on leave at once. Councilwoman Wendy Greuel called Cluff insubordinate. Supervisor Zev Yaroslavsky threatened to take steps to sever the county's contract with the EIDC if Cluff remained, and he accused EIDC's lawyers of betraying the governing board.

EIDC's outside corporate lawyers denied they were siding with Cluff, and they subsequently resigned. Cluff went on vacation and continued to negotiate directly with the EIDC's special consultant, Keith Comrie.

Meanwhile, county auditors and D.A.'s investigators sifted through dozens of boxes of financial and other documents, seized in the series of raids.

Auditors have questioned some $500,000 in expenses claimed by Cluff, including membership in a private Beverly Hills cigar club, tips equal to 100 percent of restaurant bills, and travel to France and the Caribbean.

Cluff previously claimed to executive committee members that all the billings were proper, and EIDC officials said Cluff used his personal credit cards as EIDC's line of credit.

In Pittsburgh, investigators said they suspected Cluff and Keezer of misappropriating public funds. Investigators accused the two of secreting the funds - using the Pittsburgh Film Office, an organization called Film US and various bank accounts.

EIDC officials have said the agency is not a public entity, despite its being treated as one in the district attorney's case.

The Daily News in September disclosed that the EIDC - created from city and county film offices in 1995 with a goal of streamlining the process for location permits, and stemming runaway movie and film production - had contributed $10,000 over the previous two years to help the Pittsburgh Film Office's fund-raising efforts.

Search-warrant affidavits also cite more than $35,000 in EIDC funds used in connection with the startup or operation of Film US, a group whose stated purpose is to lobby Congress for legislation keeping movie production in the United States. Keezer is chairwoman and Cluff an officer of Film US.

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Cody Cluff