Los Angeles (April 1, 2003) - A former accountant for the swanky Chateau Marmont and Hollywood Standard hotels was arrested by FBI agents on charges of embezzling roughly $11.4 million from the hotels between the years 1997 and 2002.

Kelly Timothy Ebert, 39, of Westlake Village, was named in a criminal complaint that charges him with two felony counts of wire fraud.

According to the complaint, Ebert was embezzled the funds by secretly changing signature control over a bank account at the Bank of Orange County into which the Chateau Marmont's credit card receipts were deposited. This permitted Ebert — without a second signature — to transfer hotel funds.

He then allegedly transferred the siphoned monies to an account that he had opened. Once the money was parked in the businss account Ebert allegedly transferred money to personal accounts.

Ebert worked at the hotels until the fall of 2001, when he was terminated from the Hollywood Standard for missing a mortgage payment for the hotel. Ebert was fired from the Chateau Marmont seven months later after a $100,000 penalty was assessed for another missed mortage payment.

If convicted, Ebert faces a maximum penalty of 10 years in federal prison.

-- Electronic Accountant Newswire staff

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