Former MoviePass CEO Pleads Guilty to Fraud

Mitch Lowe, the former CEO of MoviePass, pleaded guilty to securities fraud, admitting he conspired to mislead investors regarding the sustainability of the company's $9.95 monthly subscription service. He faces a maximum of five years in prison and has agreed to assist with ongoing investigations, potentially reducing his sentence. Lowe's plea follows a series of allegations that he and Ted Farnsworth, the CEO of MoviePass's parent company, engaged in deceptive practices to inflate stock prices while the company was losing millions monthly. MoviePass, which attracted three million subscribers, ultimately declared bankruptcy in 2020 due to its unsustainable business model. Farnsworth is set to face trial on similar charges next March and is currently in federal custody following bail violations. Lowe remains free on bond and is scheduled for a status conference in March 2025.