Guilty plea possible in Hollywood hotel embezzlement scheme case
Westlake Village resident may confess to alleged multimillion dollar scheme
By John Loesing
Acorn Staff Writer

A Westlake Village man could plead guilty soon to a multimillion dollar embezzlement scheme that targeted a pair of Hollywood hotels, according to the U.S. Attorney’s office.

Kelly Timothy Ebert, 39, faces 26 counts of felony wire fraud charges stemming from a series of thefts that occurred at the Chateau Marmont and Hollywood Standard hotels between 1997 and 2002.

During that time, Ebert allegedly siphoned $11.4 million from the hotel bank accounts and directed the funds into a series of personal accounts, according to the U.S. Attorney’s complaint.

"Based on some comments at the last hearing we had, he’s indicated that he’s interested in pleading," said Greg Weingart, assistant U.S. Attorney.

Ebert used the money to purchase and improve a $2.3 million home near Lake Sherwood Country Club in Thousand Oaks, to operate various businesses, including a Santa Barbara bed and breakfast, and to purchase automobiles and celebrity memorabilia, the complaint said.

Under the scheme, Ebert apparently took control of Chateau Marmont’s credit card deposits—which were supposed to go the Bank of Orange County—and transferred the funds to a destination of his own choosing.

Ebert used several different methods to hide his theft. At the Hollywood Standard, he ordered an assistant to wait at the front desk for the mail to arrive and to remove all incriminating bank statements. Many of the documents were simply shredded.

Both the Chateau Marmont and the Hollywood Standard are owned by hotelier Andre Balazs of New York City. Ebert was hired as controller of the Chateau Marmont in 1993 and was named controller at the Hollywood Standard when Balazs and his investors opened the hotel in 1998.

Ebert worked at both hotels until late 2001 when the Hollywood Standard fired him for failing to meet a hotel mortgage payment. Chateau Marmont fired Ebert in March 2002 after the hotel incurred a $100,000 penalty for the missed payment.

Ebert also was convicted in 1987 of a forgery charge in Colorado, Weingart said.

The next hearing on the embezzlement case is May 5, but sentencing would not come immediately.

"After somebody pleads guilty the sentencing is usually set out for eight to 10 weeks after the guilty plea, and then the probation department prepares a report that recommends the sentence and both parties have a chance to comment on it," Weingart said.