March 26, 2023 #1 Local News, Information and Event Source for the Century City/Westwood areas.

Department of Justice Charges Former MoviePass Exec for Embezzling Funds for Coachella Party

Khalid Itum faces up 60 years in federal prison following recent indictment

A former executive at cinema subscription service MoviePass Inc. was recently arrested on a federal grand jury indictment alleging he embezzled approximately $260,000 from MoviePass’ parent company to repay money he borrowed to produce an event at the Coachella music festival. 

According to the Department of Justice announced that Khalid Itum, 42, of Hollywood, was arrested by special agents with the FBI on Tuesday and charged with two counts each of wire fraud and money laundering.

At his arraignment Tuesday afternoon in United States District Court, Itum pleaded not guilty to the charges, and an April 18 trial date was scheduled. He was ordered released on $75,000 bond.

Itum was a MoviePass executive from November 2017 until March 2019. MoviePass was the short lived yet popular New York-based company that charged subscribers a flat monthly fee in exchange for credits they could spend on movie tickets from any theater in MoviePass’s network of participating cinemas. In August 2017, Helios & Matheson Analytics (HMNY), a New York-based data analytics company, acquired MoviePass.

In the spring of 2017, Itum registered Kaleidoscope Productions LLC, a Los Angeles-based company that provided production and marketing services. That year, Itum, through Kaleidoscope, organized a party at the annual Coachella Valley Music and Arts Festival in Indio. Neither MoviePass nor HMNY participated in the Coachella event, according to the indictment returned last Friday by a federal grand jury, 

Prosecutors say Itum borrowed money from two individuals to help fund Kaleidoscope’s costs at Coachella. To repay the borrowed money, Itum later allegedly submitted sham invoices to HMNY for services purportedly rendered by Kaleidoscope and a different company owned by an Itum associate. According to the Department of Justice, Itum allegedly caused HMNY employees to wire money from MoviePass and HMNY accounts to a Kaleidoscope bank account to pay the sham invoices. 

“Itum allegedly concealed his scheme by lying to HMNY’s auditor that Kaleidoscope had been used to pay legitimate MoviePass expenses from the 2018 Coachella festival,” reads a press release from the Department of Justice. 

Itum caused HMNY a total loss of $260,000, according to the indictment.

If convicted of all charges, Itum would face a statutory maximum sentence of 20 years in federal prison for each wire fraud count and up to 10 years in federal prison for each money laundering count.

in Crime, News
Related Posts

Appeals Court Overturns Lower-Court Decision on Ride-Share Driver Classification

March 24, 2023

March 24, 2023

Proposition 22 exempted ride-share companies from certain labor laws, court rules in favor of the companies By Sam Catanzaro ​​A...

California Housing Affordability Crisis Linked to Lack of Health Care Access, UCLA Report Finds

March 24, 2023

March 24, 2023

New Report by the UCLA Center for Health Policy Research highlights the connection between lack of affordable housing, delayed access...

Curry House CoCoICHIBANYA to Expand its Presence with New Location in Sawtelle Japantown

March 23, 2023

March 23, 2023

1947 Sawtelle Blvd location planned for popular chain By Dolores Quintana Get excited because CoCo ICHIBANYA, a restaurant with 1,400...

Pizzana Opens Fourth Los Angeles Spot in Silver Lake

March 23, 2023

March 23, 2023

Marina del Rey location planned for late spring as well After months of anticipation, Brentwood’s Pizzana will open its fourth...

Survey: Your Opinion on Outdoor Dining and Removing Barriers for Restaurants

March 23, 2023

March 23, 2023

The COVID-19 pandemic drastically changed the way we live our lives, and one of the most significant impacts has been...

California Assembly Bill Aims to Extend Relief Measures for Restaurants During Pandemic

March 22, 2023

March 22, 2023

Legislation would preempt local ordinances and preserve regulatory flexibility for struggling neighborhood restaurants By Sam Catanzaro A new bill proposed...

Los Angeles Museums and Zoo Offer Free Admission for LAUSD Students During Strike

March 21, 2023

March 21, 2023

Natural History Museum and La Brea Tar Pits provide free admission during three-day strike, Los Angeles Zoo and Botanical Gardens...

Silverado Senior Living Management and Three Managers Charged in Connection with 14 COVID-Related Deaths in Los Angeles Care Facility

March 21, 2023

March 21, 2023

Managers are accused of not following accepted clinical standards and not taking appropriate steps to quarantine the new resident or...

Kenyan Woman Wins Los Angeles Marathon, Claims $10K Bonus for Finishing Ahead of Men’s Winner

March 21, 2023

March 21, 2023

Stacy Ndiwa and Jemal Yimer take home gold medals in 38th Los Angeles Marathon Kenyan runner Stacy Ndiwa won the...

LA Mayor Appoints Councilwoman Yaroslavsky to Metro Board

March 20, 2023

March 20, 2023

Mayor Bass appoints CD 5 Councilwoman to serve on the Metro Board of Directors Los Angeles Mayor Karen Bass has...

LAUSD on Alert for Potential Three-Day Strike

March 20, 2023

March 20, 2023

Union representing workers, including custodians, cafeteria workers, teacher assistants and other support staff have voted to walk off the job...