A Wendron man, who was the producer of the first modern British film to be shot in 3D, has been found guilty of a £1.5 million "complex and organised" VAT fraud.

The film, Eldorado, which featured a number of well-known British and Hollywood actors, including former Dr Who Sylvester McCoy and Splash actress Daryl Hannah, was the last to be made by David Carradine, of Kung Fu fame, before he died in 2009.

Richard Driscoll falsified invoices for the costs of making films in order to reclaim VAT back that he was not entitled to and set up a number of associated companies that were used purely to commit the crime.

Paul Barton, assistant director of criminal investigation at HMRC, said: “HMRC investigators have unravelled a complex and organised VAT fraud. Driscoll knew that he was breaking the law, yet chose to overlook it for the opportunity of making what he wrongly assumed would be easy money, at the expense of the UK taxpayer.

Driscoll owned Nanpean Studio based at Lancarrow, Four Lanes, Redruth where the films were made. The claims for repayment of £1.5 million VAT was based on production costs of more than £9 million but investigators found that the costs were actually less than £1 million. Bogus invoices were sent to support the false repayment claims and other invoices were genuine but had their values inflated.

Richard Driscoll, director of Higher Nanpean Film Studios Ltd (HNFS Ltd); House of Fear Ltd (HOF Ltd); House of Fear Film Production Ltd (HOFFP Ltd); and Grindhouse Films Ltd, was arrested on June 6 and later charged with VAT fraud.

He was found guilty on June 5 at Southwark Crown Court of conspiracy to defraud VAT. He will be sentenced on July 1by the same court.

The fraud took place between January 2009 and September 2011.