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Former MoviePass head pleads guilty to securities fraud
The guilty plea of Ted Farnsworth, former CEO of MoviePass' parent company, comes fewer than four months after former MoviePass CEO Mitch Lowe’s guilty plea.
The agency accused him of making false and misleading representations of HMNY’s and MoviePass’ business to artificially inflate stock and woo investors. Farnsworth falsely claimed that MoviePass’ cost of goods (the number of tickets each subscriber bought with their subscription) naturally declined over time, which was in line with his publicly stated expectations. A downward spiral commenced, MoviePass and its parent company declared bankruptcy in 2020 and the pair of Florida men in charge of the too-good-to-be-true scheme have admitted their guilt in a federal court.
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