Nicola Borrelli has resigned as head of Italy's film department amid a scandal involving a tax credit for a film that was never produced.

Kaufmann is facing serious criminal charges, including the murder of his partner and their infant daughter, raising significant concerns about the legitimacy of the tax credit.

His resignation follows allegations that the tax credit, amounting to approximately $1 million, was awarded for the film project 'Stelle della Notte' in 2020, which was never realized.

The controversy has intensified due to the involvement of Charles Francis Kaufmann, a 46-year-old U.S. citizen and lead producer of the nonexistent film, who is currently a suspect in a double murder case.

He was arrested in Greece under a European warrant issued by Italy, following the discovery of the bodies of the victims in a Rome park on June 7, 2025.

In response to the scandal, Culture Minister Alessandro Giuli stated that the ministry is cooperating with prosecutors and acknowledged ongoing issues with financing unrealized film projects.

This situation has raised serious questions about the oversight and integrity of Italy's film financing system, particularly regarding taxpayer money.

The Italian government is currently reforming its tax credit system due to concerns over the disparity between the volume of films produced and audience engagement.

Borrelli's resignation occurred after Minister Giuli escorted police to seize documents related to the investigation into the film department's practices.

While the minister expressed gratitude for Borrelli's service, he did not provide specific reasons for the resignation.

The scandal has garnered widespread media coverage and public outcry, highlighting the intersection of international crime and government funding in the entertainment sector.

Kaufmann, using the alias Rexal Ford and a fake passport, applied for the tax credit through Tintagel Films, which partnered with Rome-based Coevolutions.