An American businessman fraudulently billed almost a quarter of a million dollars to film director Sir Peter Jackson's credit card.
Richard Berry, who sells miniature toy soldiers, faces a prison sentence for charging about $US190,000 ($NZ246,351) on the Lord of the Rings director's American Express, the Daily Tribune reported.
The news comes as Sir Peter rests in Wellington Hospital following surgery for a perforated ulcer. He was admitted on Wednesday night with acute stomach pains.
Sir Peter had used his credit card in 2007 to buy toys online from Barry's Toy Soldier Company based in Royal Oak, Michigan.
Berry's lawyer, David Steingold, said his client made the charges because his company was in financial trouble.
"He needed inventory and used the credit card and hoped to repay the money when sales picked up," he said. "Things got out of hand because the economy didn't turn around."
Berry admitted to theft in 2008 when he was contacted by the credit card company, and then confessed to United States federal authorities in 2009. He struck a plea deal.
He now faces up to 18 months in prison when he is sentenced on February 7, Mr Steingold said.
Berry had a similar conviction in 1993.
Mr Steingold said he hoped to persuade the judge to place Berry on probation, house arrest, or in a half-way house, so he can keep working to finish paying off the debt.
"This is the story of a struggling businessman who made a desperate move to keep the business going," Mr Steingold said. "He has been paying the money back and will not stop until every penny is repaid."
Berry owes the money to the credit card company; Sir Peter did not lose any money, the newspaper reported.
Sir Peter is currently resting comfortably in hospital and his doctors expect him to make a full recovery.
The health scare has slightly delayed the start of The Hobbit filming, which was scheduled to start next month.
The Hobbit author JRR Tolkien suffered from a perforated ulcer before dying in 1973.
