×
You will be redirected back to your article in seconds

FBI Searches LMNO Productions in Embezzlement Scandal

The FBI is searching the Encino offices of LMNO Productions, the reality show producer that is reeling from an alleged embezzlement scandal.

“The FBI executed federal search warrants this morning,” said Lourdes Arocho, an FBI spokeswoman, who confirmed that the searches were limited to the LMNO offices, but declined additional comment.

The search warrants were sealed by a federal judge. No arrests are expected today, the FBI said.

LMNO confirmed that the agents were at its offices. “We are fully supportive of and cooperating with the full investigation of criminal activity perpetrated against our company,” a spokeswoman said.

In a federal lawsuit filed last week, LMNO alleged that its former accountant had stolen hundreds of thousands of dollars from the company over the course of several years. The accountant allegedly falsified documents and left the company’s financial statements in disarray, according to the lawsuit. When the embezzlement was uncovered last year, the accountant allegedly threatened to expose the company’s beleaguered condition to Discovery Communications, which distributed a half dozen of its shows, including “The Little Couple.” The accountant allegedly demanded an $800,000 payment to keep quiet, according to the suit.

The company says it did not pay. Discovery has said that it undertook a review of its relationship with LMNO, and found “procedures and practices” that were lacking. It terminated its contracts with LMNO two weeks ago, and according to LMNO has been producing its own episodes of “The Little Couple” without the production company.

More Biz

  • Jussie Smollett Good Morning America

    Jussie Smollett Angrily Denies Complicity in Attack

    Attorneys for “Empire” actor Jussie Smollett issued a statement Saturday denying that he orchestrated his Jan. 29 assault, and saying he is “angered” and “devastated” by recent developments in the case. Chicago police want to interview Smollett, after learning new evidence from two Nigerian brothers who were released on Friday night. Local media outlets have [...]

  • Walt Disney Archives Founder Dave Smith

    Walt Disney Archives Founder Dave Smith Dies at 78

    Walt Disney Archives founder Dave Smith, the historian who spent 40 years cataloging and preserving the company’s legacy of entertainment and innovation, died Friday in Burbank, Calif. He was 78. Smith served as Disney’s chief archivist from 1970 to 2010. He was named a Disney Legend in 2007 and served as a consultant to the [...]

  • Colin Kaepernick Kneel

    Colin Kaepernick, Eric Reid Reach Settlement With NFL

    Colin Kaepernick and Eric Reid, two football players who alleged the National Football League colluded to oust them from the game after they started kneeling in protest of racial inequality during the playing of the national anthem, have reached a settlement in the matter, according to a statement from the sports organization and lawyers representing [...]

  • R. Kelly

    R. Kelly Could Be in ‘Big Trouble’ Over Alleged New Sex Tape, Attorney Says

    Strong allegations of sexual misconduct have followed R. Kelly for 25 years, but the singer has always managed to slip free. Yet reports that a videotape of him sexually assaulting an underage girl, combined with the outcry surrounding the Lifetime documentary “Surviving R. Kelly,” means that public sentiment, at the very least, is definitely not [...]

  • Christian Bale as Dick Cheney in

    New Media Residuals and Feature Films Contribute to Spike in Writers' Pay

    The outlook for members of the Writers Guild of America has brightened — even amid pervasive uncertainty in the entertainment industry. According to the most recent report to WGA West members, earnings surged 2.8% to $1.41 billion in 2017, thanks mostly to gains in feature films and new-media residuals. Total covered earnings for WGA West [...]

  • Joe Dante Gremlins

    Hollywood Execs Seek Licensing Deals at the New York Toy Fair

    On Feb. 16 more than 30,000 studio executives, buyers and toy company reps will gather in Manhattan for the annual Toy Fair New York, all vying for market share and trying to snag the latest hot trend in a fast-changing industry. Those working the film side of the business will focus much of their attention [...]

  • Lady Gaga Bradley Cooper A Star

    Universal Music Group Fuels 11.3% Rise in Vivendi's 2018 Revenues

    Vivendi’s revenues were up 11.3% to €13.93 billion ($15.7 billion) in 2018, powered by Universal Music Group, which delivered such hits as the “A Star Is Born” soundtrack and Drake’s new album. UMG’s revenues climbed by 10% to €6 billion ($6.8 billion) compared to 2017. On top of the “A Star Is Born” soundtrack, the [...]

More From Our Brands

Access exclusive content