Former MoviePass head pleads guilty to securities fraud

“A Florida man pleaded guilty today,” began a Department of Justice press release published on Tuesday. In this case, the ever-infamous Florida Man is none other than Ted Farnsworth, the former CEO of MoviePass’ parent company. His plea comes fewer than four months after another MoviePass leader, former CEO Mitch Lowe, entered a guilty plea of his own.

Farnsworth pleaded guilty to one count of securities fraud and another of conspiracy to commit securities fraud. He’ll face a maximum of 20 years in prison for the former charge and up to five for the latter. A sentencing hearing will be scheduled later.

The DOJ charged Farnsworth, 62, with scheming to defraud investors in MoviePass’ former parent company, Helios & Matheson Analytics (HMNY). The agency accused him of making false and misleading representations of HMNY’s and MoviePass’ business to artificially inflate stock and woo investors.

If that ...