Farnsworth also misrepresented MoviePass' subscription model, claiming it was profitable and sustainable when it was actually a money-losing strategy. He falsely asserted that the company could monetize subscriber data using "big data" analytics. As a result of these fraudulent activities, Farnsworth faces a maximum sentence of 20 years in prison for securities fraud and an additional five years for conspiracy to commit fraud, with a sentencing hearing yet to be scheduled.
Key takeaways:
- Theodore Farnsworth, ex-CEO of Helios & Matheson Analytics, pleaded guilty to defrauding investors in MoviePass and Vinco Ventures.
- Farnsworth and his co-conspirators artificially inflated Helios stock from August 2017 through March 2019.
- He falsely claimed MoviePass' subscription model was profitable and misrepresented the capabilities of their AI technology.
- Farnsworth faces a maximum sentence of 20 years for securities fraud and five years for conspiracy to commit fraud.