{"id":52246,"date":"2023-02-22T13:00:08","date_gmt":"2023-02-22T21:00:08","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=52246"},"modified":"2023-02-22T13:00:08","modified_gmt":"2023-02-22T21:00:08","slug":"former-moviepass-executive-allegedly-embezzled-260000-to-repay-coachella-music-festival","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=52246","title":{"rendered":"Former MoviePass Executive Allegedly Embezzled $260,000 to Repay Coachella Music Festival"},"content":{"rendered":"<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <strong>\u00a0LOS ANGELES<\/strong><\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-14844 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/FBI-Logo-300x225.jpg\" alt=\"\" width=\"300\" height=\"225\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/FBI-Logo-300x225.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/FBI-Logo-45x35.jpg 45w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/FBI-Logo.jpg 640w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Officials stated Wednesday that a former executive at cinema subscription service MoviePass Inc. has been arrested on a federal grand jury indictment alleging he embezzled approximately $260,000 from MoviePass\u2019 parent company.<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">Officials allege that he allegedly did this to repay the money he borrowed to produce an event at the Coachella music festival.<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\"> Khalid Itum, 42, of Hollywood, was arrested by special agents with the FBI on Tuesday. Itum is charged with two counts of wire fraud and two counts of money laundering.<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <a href=\"https:\/\/cjnotebook.com\/photo-by-merch-husey\/\" rel=\"attachment wp-att-52249\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-52249 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/eezgog4as5m-225x300.jpg\" alt=\"red chairs in a room\" width=\"225\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/eezgog4as5m-225x300.jpg 225w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/eezgog4as5m-768x1024.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2023\/02\/eezgog4as5m.jpg 900w\" sizes=\"auto, (max-width: 225px) 100vw, 225px\" \/><\/a>At Tuesday&#8217;s arraignment, Itum pleaded not guilty to the charges, and an April 18 trial date was scheduled. He was ordered released on $75,000 bond.<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 According to the indictment returned Friday by a federal grand jury, Itum was a MoviePass executive from November 2017 until March 2019. <\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">MoviePass was a 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\u2019s network of participating cinemas. <\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">In August 2017, Helios &amp; Matheson Analytics (HMNY), a New York-based data analytics company, acquired MoviePass.<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In the spring of 2017, Itum registered Kaleidoscope Productions LLC, a Los Angeles-based company that provided production and marketing services. <\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">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.<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">Itum borrowed money from two individuals to help fund Kaleidoscope\u2019s costs at Coachella. <\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-6172 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading-300x228.jpg\" alt=\"\" width=\"300\" height=\"228\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading-300x228.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading-45x35.jpg 45w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/09\/FBI-Insider-Trading.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>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. Itum allegedly caused HMNY employees to wire money from MoviePass and HMNY accounts to a Kaleidoscope bank account to pay the sham invoices. I<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">tum allegedly concealed his scheme by lying to HMNY\u2019s auditor that Kaleidoscope had been used to pay legitimate MoviePass expenses from the 2018 Coachella festival.<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Itum caused HMNY a total loss of $260,000, according to the indictment.<\/span><span style=\"font-size: 20px; font-family: georgia, palatino;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\"><i>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/i>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.<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The FBI\u2019s New York Field Office is investigating this matter. <\/span><span style=\"font-size: 20px; font-family: georgia, palatino;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Assistant U.S. Attorney David Y. Pi of the Major Frauds Section is prosecuting this case.<\/span><\/p>\n<p class=\"yiv6633492074MsoNormal\" style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: georgia, palatino;\">\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0LOS ANGELES Officials stated Wednesday that a former executive at cinema subscription service MoviePass Inc. has been arrested on a federal grand jury indictment alleging he embezzled&#8230;<\/p>\n","protected":false},"author":1,"featured_media":52247,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-52246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-department-of-justice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - 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