Indictment — USA v. FARNSWORTH (Dkt. 3, S.D. Fla.)

Summary

A grand jury indictment against Theodore Farnsworth and J. Mitchell Lowe, Case No. 22-20521-CR-SCOLA/GOODMAN, in the U.S. District Court for the Southern District of Florida, entered on the docket 11/03/2022 as Document 3, citing 15 U.S.C. § 78j(b), 17 C.F.R. § 240.10b-5 and 18 U.S.C. § 1343. Count 1 charges securities fraud from at least August 2017 through March 2019, alleging that Farnsworth, Chief Executive Officer of Helios & Matheson Analytics Inc., and Lowe, Chief Executive Officer of MoviePass, made false statements about MoviePass's $9.95 "unlimited" plan, data technology and revenue to inflate HMNY's stock price. It alleges the plan was a marketing gimmick that lost money and that the defendants directed employees to "throttle" frequent users. It states Farnsworth negotiated bonuses of $1,000,000 and $1,500,000 tied to offerings totaling $190,000,000 in gross proceeds.

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