LOS ANGELES
An independent film producer has been charged with interstate transportation of stolen property related to the theft of nearly $1.5 million that should have gone to his partner in a film production deal, according to officials.
Julio Caro, 56, of Calabasas, was charged on Tuesday with moving money to New Jersey that had been stolen from an investment company called Yucaipa Corporate Initiatives Fund I, LP.
Caro agreed to plead guilty to stealing $1.4 million from Yucaipa for more than five years, officials said.
“This defendant exploited his position of trust by stealing money from a business he had been partners with for years,” said U.S. Attorney Eileen M. Decker. “Mr. Caro then engaged in another crime by moving the pilfered money across the country.”
Caro turned himself into authorities and is scheduled to be in court on July 27.
Caro, through his company, Broken Rose Productions, Inc. entered into a limited liability agreement with Yucaipa in early 2005. The resulting LLC, which was called R-Caro Productions, LLC produced two films, including “Homie Spumoni,” which was distributed by Warner Brothers Entertainment.
When Warner Brothers sent distribution proceeds to R-Caro, the money should have gone to Yucaipa, which had provided much of the financing for the film. Instead, “Caro stole these funds and used these funds to pay for his personal expenses, including, but not limited to, his mortgage and car lease payments,” according to the plea agreement.
“Mr. Caro violated both the law and his partner’s trust when he embezzled royalty payments and transferred the stolen funds to the East Coast,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case should serve as a warning to those who evade detection by crossing state lines.”
The defendant is facing up to 10 years in federal prison, according to officials.