Federal Prosecutors Charge Ex-CEOs of MoviePass, Parent Company in Alleged Fraud Scheme

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The former CEOs of MoviePass and its parent company have been charged with fraud, according to the Justice Department.

Without the backing of movie theaters, which had balked at MoviePass' business model and intrusion into the industry, the company was forced to dismantle in September 2019.

Co-founder Stacy Spikes regained ownership of the company in late 2021, but a new version of MoviePass has yet to make its official debut. The company is currently planning beta tests in several cities including Chicago. The expectation is that the new subscription will offer three pricing tiers for $10, $20 and $30, respectively, with each level having a certain number of credits that can be used towards redeeming movie tickets.

The news of the indictment comes after the Securities and Exchange Commission in September accused Lowe, Farnsworth and another former MoviePass executive, Khalid Itum, of"The indictment repeats the same allegations made by the Securities and Exchange Commission in the Commission's recent complaint filed on September 27th against Mr.

The former CEOs are charged with one count of securities fraud and three counts of wire fraud. If convicted, they each face a maximum penalty of 20 years in prison.

 

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this fraud was a real win for me, the consumer of movies.

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