Theodore Farnsworth, ex-CEO of MoviePass' parent company, Vinco Ventures, has pleaded guilty to securities fraud and conspiracy. He misled investors regarding the sustainability of MoviePass' 'unlimited plan', which was a money-losing gimmick. Farnsworth falsely claimed that the plan would break even on subscription fees and that HMNY utilized AI to monetize subscriber data. The Department of Justice revealed that he knew these statements were untrue, aimed solely at inflating stock prices. Farnsworth faces up to 25 years in prison for his actions.