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Former MoviePass CEO reportedly pleads guilty to securities fraud
Mitch Lowe, one of two MoviePass execs indicted by the Justice Department in 2022, has pleaded guilty to securities fraud charges. The former MoviePass CEO admitted to conspiring to deceive the public and investors about the service’s sustainability.
Prosecutors also accused Lowe and Ted Farnsworth, former CEO of MoviePass’ parent company Helios and Matheson, of preventing subscribers from getting what was promised from the “unlimited” subscription. The company settled with the FTC in 2021 over allegations that it intentionally invalidated subscriber passwords to freeze their accounts, blocking their ability to get the movie tickets the service promised. Farnsworth's former boyfriend, who he met on an escort site, was paid $147,000, and received a Cadillac worth $144,000; after the pair split up, the feds say he falsely accused his ex of stealing the vehicle.
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