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Lawsuits, failed ventures mark developer's past

Hal Katersky, whose company specializes in soundstage projects in other states, wants to erect an office building in Hollywood. A city agency is offering him a big discount on the lot.

August 17, 2010|By Richard Verrier, Los Angeles Times

Meanwhile, Pacifica has pursued studio projects in other states, including Connecticut and Pennsylvania. The company is building a movie studio in the Philadelphia area with the help of a $10-million grant approved by the state. "We're not sure how this bankruptcy filing will affect this deal in Pennsylvania," said Amy Kelchner, spokeswoman for Gov. Ed Rendell. "We'll have to look into it before any money is paid out."

Katersky previously worked as chief financial officer of Taubman Co., a shopping center developer, and ran a start-up technology company, InterGlobal Waste Management, which aimed to develop wastewater treatment systems for animal farms. In late 2000, a subsidiary of InterGlobal received a grant to launch a much-touted manufacturing plant that was expected to create as many as 400 jobs. But the project fizzled, and the New Orleans Business Improvement District later won a judgment against InterGlobal for defaulting on its lease.

In 2004, InterGlobal and Katersky also were named in an investigation by the Oklahoma Department of Securities, which alleged that the company violated state law by improperly selling stock that was unregistered in the state. Katersky and InterGlobal denied any wrongdoing. Katersky said he didn't know the securities were being sold in Oklahoma and blamed the matter on a third-party vendor that InterGlobal had hired to raise funds. He settled with the department, agreeing not to sell any unregistered stock in Oklahoma in the future.

Katersky attributed InterGlobal's financial problems to Hurricane Katrina and the fallout from the Sept. 11, 2001, terrorist attacks.

"I felt bad that InterGlobal didn't succeed," he said, "because it had the idea for a great product."

richard.verrier@latimes.com

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