A former executive of MoviePass Inc., Khalid Itum, has been found guilty of embezzling over $260,000 from the popular subscription service and its parent company, Helios & Matheson Analytics. Itum, who was a Vice President of Business Development at the time, was convicted on two counts of wire fraud by a jury. However, he was acquitted on two counts of money laundering. The Department of Justice made the announcement regarding the verdict last Friday.
The embezzlement occurred as a result of Itum's attempt to repay debts incurred from organizing a marketing event at the renowned Coachella music festival in 2018. To finance this event, Itum established a separate company named Kaleidoscope Productions LLC. Allegedly, he borrowed money to fund the promotion and later repaid the debts by diverting funds from Helios & Matheson Analytics through falsified invoices.
It is worth noting that Itum had reached the position of Executive Vice President at MoviePass before leaving the company in March 2019. This departure coincided with the financial downfall of MoviePass, a subscription-based movie theater ticketing service that had suffered massive losses amounting to hundreds of millions of dollars.
The case against Itum began in February of last year when he was initially arrested for the charges. He pleaded not guilty to the accusations and was subsequently released on a $75,000 bond. However, it had been reported by Variety in 2019 that Itum had previously admitted guilt in stealing money from a previous employer, a furniture company.
Itum's sentencing is scheduled for April 29, where he could potentially face a maximum of 20 years in federal prison. The guilty verdict for embezzling funds highlights the seriousness of the crime committed by the former MoviePass executive.
This case serves as a reminder of the importance for companies to maintain strong internal controls and oversight to prevent such fraudulent activities. Embezzlement can have severe consequences for both the company and individuals involved. It also emphasizes the need for individuals in positions of trust and responsibility to act with integrity and honesty.
As the sentencing approaches, it remains to be seen what the consequences will be for Khalid Itum. The outcome of this case serves as a cautionary tale and a reminder that financial crimes will be pursued by the authorities to maintain accountability and preserve trust in the business world.
