Former MoviePass CEO Mitch Lowe and CEO Ted Farnsworth of parent company Helios & Matheson Analytics (HMNY) were once the smiling future of the subscription-based movie ticket service. These days, they find themselves in deep trouble with the SEC over securities fraud and other charges that could land them behind bars for 20 years.
When they took over MoviePass in 2017, they shoved co-founder Stacy Spikes out the door as they slashed prices from $50 to $9.95 a month. It was supposed to be an unlimited movie subscription that promised no blackout times, a bold statement that made most moviegoers scratch their heads wondering how it was even possible.