Ted Farnsworth, the former chairman of the once-viral movie theater subscription service MoviePass, was arrested Friday in connection to criminal charges filed by the U.S. Department of Justice, according to court documents obtained by Fortune.
The documents, which were filed in a federal court in Florida last week, show that arrest warrants were issued on Nov. 2 for both Farnsworth, 60, and his former business partner Mitch Lowe, 70, who was the former CEO of MoviePass. The documents state that Farnsworth was arrested on Nov. 4 in Washington, D.C. Both executives were indicted last week for allegedly engaging in a scheme to artificially inflate the price of MoviePass’s parent company, Helios and Matheson, in order to attract new investors. If convicted, the men face a maximum penalty of 20 years in prison for each count of fraud of which they are accused: one count of securities fraud and three counts of wire fraud.
It is unclear from court records whether Lowe has also been arrested by authorities at this time, and he could not be reached for comment via his personal website or through his speaking agency. The documents show that Farnsworth is being represented by George Terwilliger III, who was nominated Deputy Attorney General of the Department of Justice in 1992 under President Georg H. W. Bush. Terwilliger didn’t respond to an immediate request for comment. (Over the weekend a spokesperson for Farnsworth told CBS News that the former executive’s legal team plans “to...
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