A former govt at movie show subscription service MoviePass Inc. has been discovered responsible of embezzling no less than $260,000 from MoviePass and its guardian firm to repay cash he borrowed to fund an occasion on the Coachella music pageant, the Justice Division introduced Friday, Feb.2
Khalid Itum, a 43-year-old man from Hollywood, was a MoviePass govt from November 2017 to March 2019, in accordance with proof offered on the trial. MoviePass, acquired by an information analytics firm known as Helios & Matheson Analytics (HMNY) in 2017, charged month-to-month subscribers a price in change for credit they might use on film tickets from any theater in MoviePass’s community.
Within the spring of 2017, Itum registered Kaleidoscope Productions LLC, a Los Angeles-based firm that supplied manufacturing and advertising and marketing providers, the DOJ’s assertion mentioned.
Itum borrowed cash from two people to fund a Kaleidoscope promotional occasion on the 2017 Coachella Valley Music and Arts Competition in Indio which didn’t contain both MoviePass or HMNY, Friday’s assertion mentioned.
An FBI investigation revealed Itum later submitted faux expense invoices to HMNY which led to cash from MoviePass and HMNY accounts being wired to a Kaleidoscope checking account. Authorities additionally discovered that Itum lied to HMNY’s finance division by claiming that Kaleidoscope had been used to pay reliable MoviePass bills from the Coachella pageant and supplied different consulting providers.
Itum induced HMNY and MoviePass a complete lack of no less than $260,000, the DOJ’s assertion mentioned.
Itum was discovered responsible Thursday, Feb. 1 of two counts of wire fraud and a sentencing listening to is scheduled for April 29, with a pontential most sentence of 20 years in federal jail for every wire fraud depend.
The jury did, nevertheless, acquit Itum of two counts of cash laundering.