'MoviePass Execs Charged With Securities Fraud

With Securities Fraud

Two former

leaders of MoviePass have been indicted on securities fraud charges for allegedly deceiving investors about

MoviePass exploded

in 2017 after it announced its all-you-can watch subscription plan, priced at $9

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

Both cases

allege that Lowe and Farnsworth falsely claimed that their subscription model had been market tested

In fact,

the government alleges that they took steps to try to block subscribers from using the

In a

statement on Friday, the FBI characterized their assertions as an “attempted scam” intended to prop

“Attempted scams

of this nature erode the public’s faith in our financial markets,” said Michael J

Driscoll, the

assistant director of the FBI’s New York field office

“The FBI

is committed to ensuring these types of frauds and swindles are uncovered and the perpetrators

Morat on ‘No Se

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