Former MoviePass CEO Theodore Farnsworth has pleaded guilty to securities fraud and conspiracy charges for misleading investors about the movie subscription service’s “unlimited plan” and its parent company’s capabilities, U.S. prosecutors said.
Farnsworth falsely claimed the $9.95 monthly unlimited movie plan was sustainable and that Helios & Matheson Analytics could monetize subscriber data through artificial intelligence, knowing both statements were untrue. He faces up to 20 years in prison for MoviePass-related fraud and five years for a separate conspiracy charge involving Vinco Ventures.