A former MoviePass executive has been convicted of embezzling at least $260,000 from the subscription movie service to repay money he borrowed to fund a party at Coachella Valley Music and Arts Festival in 2018.
Khalid Itum was found guilty on Thursday on two counts of wire fraud, though he was acquitted of money laundering charges, announced the Department of Justice.
The guilty verdict, returned by a jury after a trial in federal court in California, was the latest reminder of fraud perpetuated by MoviePass executives. The DOJ in 2022 charged former chief executives Theodore Farnsworth and J. Mitchell Lowe with securities fraud for engaging in a scheme to artificially inflate the price of the company’s stock by misleading investors. The false statements involved claims that MoviePass’ business model in which subscribers could see unlimited movies in theaters with no blackout dates for a flat monthly fee of $9.95 was a tested, sustainable business model.
Khalid Itum was found guilty on Thursday on two counts of wire fraud, though he was acquitted of money laundering charges, announced the Department of Justice.
The guilty verdict, returned by a jury after a trial in federal court in California, was the latest reminder of fraud perpetuated by MoviePass executives. The DOJ in 2022 charged former chief executives Theodore Farnsworth and J. Mitchell Lowe with securities fraud for engaging in a scheme to artificially inflate the price of the company’s stock by misleading investors. The false statements involved claims that MoviePass’ business model in which subscribers could see unlimited movies in theaters with no blackout dates for a flat monthly fee of $9.95 was a tested, sustainable business model.
- 2/2/2024
- by Winston Cho
- The Hollywood Reporter - Movie News
A former MoviePass executive was arrested Tuesday on charges that he embezzled $260,000 from the company to pay for a party at Coachella Music Festival.
Khalid Itum, 42, was indicted on two counts of wire fraud and two counts of money laundering. The charges allege that Itum submitted sham invoices to MoviePass to pay for the marketing event, which he had run through a separate company that he owned and controlled.
MoviePass collapsed in 2019, after losing hundreds of millions of dollars on its all-you-can-watch theatrical subscription business. Last November, the two top executives — Theodore Farnsworth and Mitch Lowe — were indicted on securities fraud charges for allegedly deceiving investors about the sustainability of the business.
Farnsworth, Lowe and Itum were also accused in a civil complaint from the Securities and Exchange Commission in September. The SEC complaint first leveled the allegation about Itum and the Coachella party.
In defending the SEC charges, Itum...
Khalid Itum, 42, was indicted on two counts of wire fraud and two counts of money laundering. The charges allege that Itum submitted sham invoices to MoviePass to pay for the marketing event, which he had run through a separate company that he owned and controlled.
MoviePass collapsed in 2019, after losing hundreds of millions of dollars on its all-you-can-watch theatrical subscription business. Last November, the two top executives — Theodore Farnsworth and Mitch Lowe — were indicted on securities fraud charges for allegedly deceiving investors about the sustainability of the business.
Farnsworth, Lowe and Itum were also accused in a civil complaint from the Securities and Exchange Commission in September. The SEC complaint first leveled the allegation about Itum and the Coachella party.
In defending the SEC charges, Itum...
- 2/22/2023
- by Gene Maddaus
- Variety Film + TV
The FBI has unsealed an indictment charging two former executives at MoviePass and its parent company, Helios & Matheson Analytics Inc. (Hmny), with multiple counts of securities and wire fraud.
J. Mitchell Lowe, the CEO of MoviePass at the time, and Theodore Farnsworth, past CEO and Chairman of Hmny, allegedly connived to artificially inflate the stock price of Hmny and bring in new investors through materially false and misleading representations of the companies’ business and operations.
According to the indictment filed Friday, the executives are accused of falsely stating that MoviePass’ 9.95-per-month “unlimited” plan was “tested, sustainable, and would be profitable or break even on subscription fees alone.” Founded in 2011, the subscription-based movie ticketing service promised that by paying a monthly fee, consumers could see as many movies as they desired, with no blackout dates.
Also Read:
MoviePass to Return on Labor Day With 3 Price Tiers, Wait List
The Fed alleges...
J. Mitchell Lowe, the CEO of MoviePass at the time, and Theodore Farnsworth, past CEO and Chairman of Hmny, allegedly connived to artificially inflate the stock price of Hmny and bring in new investors through materially false and misleading representations of the companies’ business and operations.
According to the indictment filed Friday, the executives are accused of falsely stating that MoviePass’ 9.95-per-month “unlimited” plan was “tested, sustainable, and would be profitable or break even on subscription fees alone.” Founded in 2011, the subscription-based movie ticketing service promised that by paying a monthly fee, consumers could see as many movies as they desired, with no blackout dates.
Also Read:
MoviePass to Return on Labor Day With 3 Price Tiers, Wait List
The Fed alleges...
- 11/5/2022
- by Harper Lambert
- The Wrap
A little over a month after the U.S. Securities and Exchange Commission sued two former top execs at MoviePass and its parent company, Helios + Matheson, for fraud, the Justice Department today unsealed an indictment charging those same executives, Theodore Farnsworth and J. Mitchell Lowe, each with one count of securities fraud and three counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count. At the time of the alleged fraud, Farnsworth was Helios + Matheson’s Chairman and CEO, and Lowe was MoviePass’s CEO.
The duo “allegedly engaged in a scheme to defraud investors through materially false and misleading representations relating to Hmny and MoviePass’s business and operations to artificially inflate the price of Hmny’s stock and attract new investors,” according to the indictment.
Specifically, the indictment alleges Farnsworth and Lowe “falsely claimed that MoviePass’s 9.95 ‘unlimited’ plan – in...
The duo “allegedly engaged in a scheme to defraud investors through materially false and misleading representations relating to Hmny and MoviePass’s business and operations to artificially inflate the price of Hmny’s stock and attract new investors,” according to the indictment.
Specifically, the indictment alleges Farnsworth and Lowe “falsely claimed that MoviePass’s 9.95 ‘unlimited’ plan – in...
- 11/5/2022
- by Tom Tapp
- Deadline Film + TV
Two former leaders of MoviePass have been indicted on securities fraud charges for allegedly deceiving investors about the company’s business model and sustainability.
Theodore Farnsworth, the former CEO of parent company Helios & Matheson, and Mitchell Lowe, the former CEO of MoviePass, were each charged with one count of securities fraud and three counts of wire fraud.
MoviePass exploded in 2017 after it announced its all-you-can watch subscription plan, priced at 9.95 per month. The service quickly grew from 20,000 members to more than 3 million — but hemorrhaged money and eventually collapsed.
The charges, which were unsealed on Friday, echo the allegations filed by the Securities and Exchange Commission in a civil complaint on Sept. 27.
Both cases allege that Lowe and Farnsworth falsely claimed that their subscription model had been market tested and would be sustainable over the long run.
The indictment also alleges that they falsely claimed to be using “big data” and...
Theodore Farnsworth, the former CEO of parent company Helios & Matheson, and Mitchell Lowe, the former CEO of MoviePass, were each charged with one count of securities fraud and three counts of wire fraud.
MoviePass exploded in 2017 after it announced its all-you-can watch subscription plan, priced at 9.95 per month. The service quickly grew from 20,000 members to more than 3 million — but hemorrhaged money and eventually collapsed.
The charges, which were unsealed on Friday, echo the allegations filed by the Securities and Exchange Commission in a civil complaint on Sept. 27.
Both cases allege that Lowe and Farnsworth falsely claimed that their subscription model had been market tested and would be sustainable over the long run.
The indictment also alleges that they falsely claimed to be using “big data” and...
- 11/5/2022
- by Gene Maddaus
- Variety Film + TV
MoviePass was founded on a lie, the Securities and Exchange Commission alleged in a complaint filed on Monday night.
The company introduced its 9.95-a-month, all-you-can-watch subscription plan in August 2017. According to the complaint, executives Theodore Farnsworth and Mitch Lowe knew that the offer was just a “marketing gimmick” and that the price was unsustainably low.
But in public, they claimed that they had done rigorous market testing and determined they could turn a profit. In fact, they had done no testing, the SEC said. Asked by Variety if the company would eventually have to raise its prices, Farnsworth said, “The answer is no.” Critics, he went on, “don’t understand our business model.”
Helios and Matheson Analytics, the parent company of MoviePass, would go bankrupt after burning through hundreds of millions of dollars. According to the SEC, Farnsworth and Lowe repeatedly lied to the public about the MoviePass business model and then,...
The company introduced its 9.95-a-month, all-you-can-watch subscription plan in August 2017. According to the complaint, executives Theodore Farnsworth and Mitch Lowe knew that the offer was just a “marketing gimmick” and that the price was unsustainably low.
But in public, they claimed that they had done rigorous market testing and determined they could turn a profit. In fact, they had done no testing, the SEC said. Asked by Variety if the company would eventually have to raise its prices, Farnsworth said, “The answer is no.” Critics, he went on, “don’t understand our business model.”
Helios and Matheson Analytics, the parent company of MoviePass, would go bankrupt after burning through hundreds of millions of dollars. According to the SEC, Farnsworth and Lowe repeatedly lied to the public about the MoviePass business model and then,...
- 9/27/2022
- by Gene Maddaus
- Variety Film + TV
The operators of the now-defunct MoviePass have reached a settlement with the Federal Trade Commission to resolve concerns that they actively prevented subscribers from using their service and didn’t protect users’ data.
The FTC on Monday announced a proposed deal with MoviePass parent company Helios and Matheson Analytics and their principals, Mitchell Lowe and Theodore Farnsworth. Under it, they’re all barred from “misrepresenting their business and data security practices” and “must implement comprehensive information security programs” in any future corporate endeavors, which will have heavy FTC oversight. As both companies have declared bankruptcy, there’s no monetary penalty ...
The FTC on Monday announced a proposed deal with MoviePass parent company Helios and Matheson Analytics and their principals, Mitchell Lowe and Theodore Farnsworth. Under it, they’re all barred from “misrepresenting their business and data security practices” and “must implement comprehensive information security programs” in any future corporate endeavors, which will have heavy FTC oversight. As both companies have declared bankruptcy, there’s no monetary penalty ...
The operators of the now-defunct MoviePass have reached a settlement with the Federal Trade Commission to resolve concerns that they actively prevented subscribers from using their service and didn’t protect users’ data.
The FTC on Monday announced a proposed deal with MoviePass parent company Helios and Matheson Analytics and their principals, Mitchell Lowe and Theodore Farnsworth. Under it, they’re all barred from “misrepresenting their business and data security practices” and “must implement comprehensive information security programs” in any future corporate endeavors, which will have heavy FTC oversight. As both companies have declared bankruptcy, there’s no monetary penalty ...
The FTC on Monday announced a proposed deal with MoviePass parent company Helios and Matheson Analytics and their principals, Mitchell Lowe and Theodore Farnsworth. Under it, they’re all barred from “misrepresenting their business and data security practices” and “must implement comprehensive information security programs” in any future corporate endeavors, which will have heavy FTC oversight. As both companies have declared bankruptcy, there’s no monetary penalty ...
Oasis Ventures Entertainment Partners says it didn't sign off on the acquisition of Emmett/Furla/Oasis Films and is asking an L.A. judge to render void the deal that launched MoviePass Films.
Helios and Matheson Analytics, the parent company of recently shuttered MoviePass, in 2018 acquired Emmett/Furla/Oasis Films to launch MoviePass Films. Former Helios CEO Theodore Farnsworth in September announced he was stepping down from his position and put in a bid to buy MoviePass' assets, including its film arm.
The lawsuit from Oasis claims Helios and Farnsworth conspired with Randall Emmett and George Furla to "steal assets" including rights to ...
Helios and Matheson Analytics, the parent company of recently shuttered MoviePass, in 2018 acquired Emmett/Furla/Oasis Films to launch MoviePass Films. Former Helios CEO Theodore Farnsworth in September announced he was stepping down from his position and put in a bid to buy MoviePass' assets, including its film arm.
The lawsuit from Oasis claims Helios and Farnsworth conspired with Randall Emmett and George Furla to "steal assets" including rights to ...
- 10/16/2019
- The Hollywood Reporter - Movie News
Oasis Ventures Entertainment Partners says it didn't sign off on the acquisition of Emmett/Furla/Oasis Films and is asking an L.A. judge to render void the deal that launched MoviePass Films.
Helios and Matheson Analytics, the parent company of recently shuttered MoviePass, in 2018 acquired Emmett/Furla/Oasis Films to launch MoviePass Films. Former Helios CEO Theodore Farnsworth in September announced he was stepping down from his position and put in a bid to buy MoviePass' assets, including its film arm.
The lawsuit from Oasis claims Helios and Farnsworth conspired with Randall Emmett and George Furla to "steal assets" including rights to ...
Helios and Matheson Analytics, the parent company of recently shuttered MoviePass, in 2018 acquired Emmett/Furla/Oasis Films to launch MoviePass Films. Former Helios CEO Theodore Farnsworth in September announced he was stepping down from his position and put in a bid to buy MoviePass' assets, including its film arm.
The lawsuit from Oasis claims Helios and Farnsworth conspired with Randall Emmett and George Furla to "steal assets" including rights to ...
- 10/16/2019
- The Hollywood Reporter - Film + TV
Economist Carl Schramm has resigned from the board of directors of MoviePass parent company Helios and Matheson Analytics, claiming that management withheld financial information and made important decisions without the board’s knowledge.
The board member said his concerns have grown substantially over the last eight weeks, as the company’s management made corporate decisions and executed “significant transactions” without the board’s knowledge or approval, offered last-minute notice of meetings and withheld material information for months.
“These and other actions have interfered with my ability to execute my responsibilities as a board member,” Schramm wrote in a letter dated Aug. 25. “Taken together, they confirm that, despite my best efforts, my ability to effectively discharge my duties as a director have been compromised beyond repair.”
Schramm resigned effective immediately.
The company filed documents with the SEC, disclosing Schramm’s exit from the board. The company said it was unaware of...
The board member said his concerns have grown substantially over the last eight weeks, as the company’s management made corporate decisions and executed “significant transactions” without the board’s knowledge or approval, offered last-minute notice of meetings and withheld material information for months.
“These and other actions have interfered with my ability to execute my responsibilities as a board member,” Schramm wrote in a letter dated Aug. 25. “Taken together, they confirm that, despite my best efforts, my ability to effectively discharge my duties as a director have been compromised beyond repair.”
Schramm resigned effective immediately.
The company filed documents with the SEC, disclosing Schramm’s exit from the board. The company said it was unaware of...
- 8/30/2018
- by Dawn C. Chmielewski
- Deadline Film + TV
The stock price of Helios & Matheson, which owns 92 percent of MoviePass, plunged by one-third today after an Seo filing revealed that it only had $15.5 million in cash at the end of April, while burning through approximately $21.7 million a month. The filing also stated that MoviePass had $27.9 million on deposit with several payment process vendors; those funds are used for ticket fulfillment and other general operating costs.
A Bloomberg report attributed the dramatic price drop to Wall Street speculation that the clock may be running out on MoviePass. Helios & Matheson CEO Theodore Farnsworth acknowledged in the filing that MoviePass’ business model is “highly uncertain,” and that the company was “unable to to estimate the actual funds we require.”
Since August, when MoviePass slashed their monthly membership to $9.95, MoviePass CEO Mitch Lowe and others with the company have maintained that the company’s business model accounted for it losing money as the business grew.
A Bloomberg report attributed the dramatic price drop to Wall Street speculation that the clock may be running out on MoviePass. Helios & Matheson CEO Theodore Farnsworth acknowledged in the filing that MoviePass’ business model is “highly uncertain,” and that the company was “unable to to estimate the actual funds we require.”
Since August, when MoviePass slashed their monthly membership to $9.95, MoviePass CEO Mitch Lowe and others with the company have maintained that the company’s business model accounted for it losing money as the business grew.
- 5/8/2018
- by Chris O'Falt
- Indiewire
Updated with closing price: Shares of Helios and Matheson Analytics, which owns MoviePass, soared 31% today, on top of a 6% uptick Friday after Verizon disclosed its 9% stake in the company.
The data firm’s stock finished at $4.21, its highest level since February but well below the $20 territory it reached last October amid a surge of interest in the monthly subscription movie ticket plan offered by MoviePass. The service has stirred up controversy in the exhibition sector. Major circuit AMC for a time had been banned by MoviePass at certain locations. Other media and tech observers wonder how long the company can fund its operations as it attempts to gain new subscribers.
Verizon’s involvement will clearly help offer some stability. In an SEC filing on Friday, the mobile giant disclosed that it owns 9.3% of the shares outstanding in Helios and Matheson. That makes it the second-largest shareholder next to CEO Theodore Farnsworth.
The data firm’s stock finished at $4.21, its highest level since February but well below the $20 territory it reached last October amid a surge of interest in the monthly subscription movie ticket plan offered by MoviePass. The service has stirred up controversy in the exhibition sector. Major circuit AMC for a time had been banned by MoviePass at certain locations. Other media and tech observers wonder how long the company can fund its operations as it attempts to gain new subscribers.
Verizon’s involvement will clearly help offer some stability. In an SEC filing on Friday, the mobile giant disclosed that it owns 9.3% of the shares outstanding in Helios and Matheson. That makes it the second-largest shareholder next to CEO Theodore Farnsworth.
- 4/16/2018
- by Dade Hayes
- Deadline Film + TV
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