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Theodore Farnsworth, former CEO and chairman of MoviePass parent Helios and Matheson Analytics (HMNY), pleaded guilty on January 7, 2025, to securities fraud and conspiracy to commit securities fraud. Federal prosecutors say one scheme involved misleading investors about MoviePass’s $9.95 “unlimited” subscription, but the plea also covers a separate securities-fraud conspiracy involving Vinco Ventures.
What was MoviePass’s $9.95 unlimited plan?
In 2017, after HMNY acquired a majority ownership interest in MoviePass, the service introduced a plan advertised at $9.95 per month. It purported to let subscribers see unlimited movies in theaters with no blackout dates. The offer was a consumer subscription; the criminal case concerns what prosecutors say Farnsworth and others told investors about its economics and HMNY’s business.
What did Farnsworth plead guilty to?
The U.S. Department of Justice says Farnsworth pleaded guilty in the Southern District of Florida to one count of securities fraud and one count of conspiracy to commit securities fraud. The DOJ describes two distinct alleged schemes:
| Scheme | Period identified by DOJ | Conduct described by prosecutors |
|---|---|---|
| HMNY and MoviePass | August 2017 through March 2019 | Misrepresentations to investors about MoviePass’s subscription plan, HMNY’s capabilities and revenue prospects. |
| Vinco Ventures | November 2020 through September 2024 | A separate securities-fraud conspiracy involving Vinco Ventures. |
These periods and descriptions come from the DOJ’s January 2025 announcement. The plea should not be described as a case solely about the consumer-facing unlimited plan: prosecutors also identify the separate Vinco matter.
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What prosecutors say investors were told about MoviePass
According to the DOJ, Farnsworth and co-conspirators represented that the $9.95 plan had been tested and was sustainable, and that subscription revenue alone would make it profitable or allow it to break even. Prosecutors say they knew instead that it was a temporary marketing gimmick meant to draw subscribers, raise HMNY’s share price and attract investors. The DOJ says MoviePass lost money on the plan.
Prosecutors also say Farnsworth made claims about HMNY’s ability to use “big data” and artificial intelligence to analyze and monetize subscriber data, although the company lacked those capabilities and had not incorporated them into the MoviePass app. The DOJ further describes misleading claims about other revenue sources and declining per-subscriber ticket costs.
How the company limited use of an “unlimited” service
To ease cash pressure, employees were directed to throttle frequent users, according to the DOJ. That alleged practice is distinct from the investor representations: it describes how the company managed usage while promoting the purportedly unlimited offer.
MoviePass executives’ plea dates and the case’s current schedule
| Person | Plea date | Count identified by DOJ |
|---|---|---|
| J. Mitchell Lowe, former MoviePass CEO | September 16, 2024 | One count of conspiracy to commit securities fraud |
| Theodore Farnsworth, former HMNY CEO and chairman | January 7, 2025 | One count of securities fraud and one count of conspiracy to commit securities fraud |
The DOJ case page lists docket 22-20521-CR in the Southern District of Florida. As of its July 22, 2026 update, it listed a status conference for December 11, 2026, at 10:30 a.m.; the page cautions that dates can change on short notice. It does not list a sentencing date, and the scheduled event is a status conference, not a sentencing hearing. See the DOJ case page.
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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Potential prison terms are maximums, not a sentence
The DOJ lists statutory maximum prison terms of 20 years for the securities-fraud count and five years for the conspiracy count. Those figures are legal ceilings, not the sentence imposed or a prediction of what Farnsworth will receive. The DOJ says the judge determines any sentence after considering the sentencing guidelines and statutory factors.
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