Federal Indictment Claims Former MoviePass Embezzled $260K 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

(Video) Gladstone’s Malibu Prepares for Reopening after Surviving Palisades Fires

July 2, 2025

July 2, 2025

With One Half of its Structure Slightly Charred and Undergoing Repairs, Gladstone’s Malibu is Reopening its Patio Space Just in...

Col. Eric Swenson Honored by LA for Historic Debris Removal Effort

July 2, 2025

July 2, 2025

Swenson, with a distinguished military background including a Ph.D. and multiple master’s degrees from Penn State and other institutions, has...

More Commercial Uses Could Be Coming to RAND Building

July 2, 2025

July 2, 2025

Amendment Unlocks New Opportunities, Secures $5.5 Million in Community Benefits The Santa Monica Planning Commission unanimously approved an amendment to...

(Video) ‘World’s Strongest Man’ Champion Pulls Big Blue Bus for 30 feet

July 1, 2025

July 1, 2025

World-class strongman Martins Licis pulled a 34,680‑pound, 35-feet long, battery electric bus through the Pier to set off Pier 360...

Proposed Rebuilding Authority for Wildfire Recovery Sparks Local Control Debate

July 1, 2025

July 1, 2025

Plan Aims to Streamline Rebuilding but Raises Questions Over Community Input A proposed “Resilient Rebuilding Authority” to oversee recovery from...

Marquez Students Rebuild Robots Destroyed in Fire, Shine at National and World Competitions

July 1, 2025

July 1, 2025

Community and Coaches Rally Behind Young Innovators Elementary students from Marquez Charter Elementary School rebuilt their robots after they were...

Second Victim Killed Alongside LAPD Sergeant in Brentwood 405 Crash Identified

July 1, 2025

July 1, 2025

Authorities Confirm Garcia, 34, Died at the Scene, GoFundMe Launched  Authorities have identified the civilian who was killed alongside a...

Why Nordstrom Says It’s Closing Its Santa Monica Place Location

July 1, 2025

July 1, 2025

A Nordstrom spokesperson explained the closure as a strategic realignment Nordstrom confirmed its decision to close its Santa Monica store...

People are Using Palisades for “Disaster Tours.” Local Officials Are Trying to Stop Them

June 30, 2025

June 30, 2025

A new motion introduced to City Council requests a coordinated strategy from LADOT, the Los Angeles Police Department, and the...

LAUSD Approves $604 Million Plan to Rebuild Fire-Damaged Palisades Schools

June 30, 2025

June 30, 2025

The reconstruction, set to conclude by the end of 2028, aims to restore facilities for approximately 3,620 students across the...

Free Virtual Planetarium Shows Coming to SMC in July

June 30, 2025

June 30, 2025

The virtual format is in place as construction of the new SMC Planetarium and Observatory nears completion The Santa Monica...

Six-Bed Mar Vista Hilltop Home Under Construction Lists for $5.3M

June 30, 2025

June 30, 2025

The private backyard is complete with a pool, spa, fire pit, built-in BBQ, and areas for outdoor dining A stunning...

(Video) Getty Villa Reopens Six Months After Dodging Destruction of Palisades Wildfires

June 29, 2025

June 29, 2025

With the reopening also comes a new exhibit, “The Kingdom of Pylos” Getty Villa Reopens Six Months After Dodging Destruction...

Three-Bed Palisades Highlands Townhouse Hits Market for $1.7M

June 29, 2025

June 29, 2025

The Mediterranean-style property, located at 1529 Michael Lane, is part of a 71-unit community A remodeled 1,919-square-foot townhouse in the...

LAPD Updates Immigration FAQ to Clarify Enforcement Role

June 28, 2025

June 28, 2025

The document, available in English and Spanish, outlines the department’s policies and limits regarding immigration status The Los Angeles Police...