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New York Times Newswire from w6iwi.org.
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Former MoviePass Executive Pleads Guilty to Fraud Over âUnlimitedâ
Plan
By Hank Sanders, 2025-01-07T22:38:21-05:00, New York Times
Theodore Farnsworth, the former chief executive of the parent company
of MoviePass, pleaded guilty to securities fraud on Tuesday after
federal prosecutors said he had misled investors about the company's
"unlimited" subscription plan.
Mr. Farnsworth, 62, of Miami, also pleaded guilty in the Southern
District of Florida to conspiracy to commit securities fraud as the
leader of another publicly traded company, Vinco Ventures, Inc. He
tried to inflate its stock price and took millions of dollars from the
company for himself, according to prosecutors and court records.
He faces a maximum of 20 years in prison for the securities fraud
count relating to his leadership of MoviePass and a maximum of five
years in prison for the conspiracy count relating to his leadership of
Vinco.
"Mr. Farnsworth was anxious to accept responsibility for his conduct,"
Sam Rabin, Mr. Farnsworth's lawyer, said in an email on Tuesday
evening. "The most important step in doing that was to plead guilty to
the crimes with which he was charged. He did that today."
In 2017, when Mr. Farnsworth was the chief executive of Helios and
Matheson Inc., which had a majority stake in MoviePass, subscribers
under its plan could watch "unlimited" movies in theaters for $9.95 a
month.
Mr. Farnsworth and J. Mitchell Lowe, then the chief executive of
MoviePass, told investors in interviews that their plan was not too
good to be true, was tested and was sustainable, prosecutors said. All
along, Mr. Farnsworth knew that the plan was not tested and he misled
investors to boost stock prices, prosecutors said.
New York Times Newswire from w6iwi.org.
The Times Newswire API provides an up-to-the-minute stream of
published articles.
Feed created at 04:00:04Z
----------------------------------------------------------
Former MoviePass Executive Pleads Guilty to Fraud Over âUnlimitedâ
Plan
By Hank Sanders, 2025-01-07T22:38:21-05:00, New York Times
Theodore Farnsworth, the former chief executive of the parent company
of MoviePass, pleaded guilty to securities fraud on Tuesday after
federal prosecutors said he had misled investors about the company's
"unlimited" subscription plan.
Mr. Farnsworth, 62, of Miami, also pleaded guilty in the Southern
District of Florida to conspiracy to commit securities fraud as the
leader of another publicly traded company, Vinco Ventures, Inc. He
tried to inflate its stock price and took millions of dollars from the
company for himself, according to prosecutors and court records.
He faces a maximum of 20 years in prison for the securities fraud
count relating to his leadership of MoviePass and a maximum of five
years in prison for the conspiracy count relating to his leadership of
Vinco.
"Mr. Farnsworth was anxious to accept responsibility for his conduct,"
Sam Rabin, Mr. Farnsworth's lawyer, said in an email on Tuesday
evening. "The most important step in doing that was to plead guilty to
the crimes with which he was charged. He did that today."
In 2017, when Mr. Farnsworth was the chief executive of Helios and
Matheson Inc., which had a majority stake in MoviePass, subscribers
under its plan could watch "unlimited" movies in theaters for $9.95 a
month.
Mr. Farnsworth and J. Mitchell Lowe, then the chief executive of
MoviePass, told investors in interviews that their plan was not too
good to be true, was tested and was sustainable, prosecutors said. All
along, Mr. Farnsworth knew that the plan was not tested and he misled
investors to boost stock prices, prosecutors said.
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