It’s been three years since I first delved into the world of Ted Farnsworth, and much like a seasoned detective revisiting an old case, I find myself back at the drawing board in 2023.
Farnsworth, a figure who’s been a constant in the entrepreneurial landscape since the 1990s, presents a curious study.
His journey, dotted with businesses that struggled to find their footing, doesn’t exactly paint the picture of a roaring success.
And let’s not overlook the slew of lawsuits he’s weathered over the years (though to be fair, a lawsuit isn’t an automatic guilty verdict, right?).
Yet, to hastily label Ted Farnsworth as a fraud or a scam artist would be to oversimplify a complex narrative.
That being said, (and here’s where the second thoughts creep in), a history marred by legal battles and numerous failed ventures doesn’t exactly inspire confidence.
It’s a tricky line to walk, balancing the scales of judgment.
Who Is Ted Farnsworth?
Ted Farnsworth, a figure synonymous with the innovative MoviePass concept, has been a significant player in the realm of business, not just recently but stretching back decades.
His journey, marked by a tapestry of various business dealings and ventures he initiated, paints a picture of a seasoned entrepreneur.
Bloomberg places Farnsworth at the age of 56, boasting a net worth in the vicinity of $8+ million.
His tenure as the CEO of Helios and Matheson Analytics Inc. adds a substantial feather to his cap.
This isn’t merely a story of financial acumen; it’s a narrative of resilience and adaptability in the face of business challenges.
To hastily brand Farnsworth as a scam artist would be to overlook the depth and breadth of his career (and realistically, any fraudulent undertakings would likely have been exposed long before now).
His leadership roles and substantial net worth are testaments to his business legitimacy.
The threads of his professional life trace back to the 90s, offering a clear trajectory of his endeavors.
However, it’s worth noting – and this is key – that the absence of fraudulent activities doesn’t inherently make someone an ideal business ally.
High-profile figures are often shrouded in controversy; think Donald Trump, Mother Teresa, or Bill Gates. Each has faced allegations of being frauds or hoaxers.
This brings us to a crucial point: not being a scam artist doesn’t automatically render someone a preferred partner in business dealings.
In the complex and often murky waters of the business world, it’s essential to navigate with caution, understanding that reputation and reality can sometimes diverge.
Farnsworth’s Business Failures
According to the Miami Herald, Farnsworth has registered over 50 companies in Florida, only 4 of which remain.
Some of his past ventures were a psychic hotline, a company for a hotel group, and a video company.
There’s not much that can be said for Farnsworth’s failures. In my mind, it shows that he’s been able to push on through life, even when his ideas don’t work out.
I’m not saying that there weren’t legitimate reasons why his business ventures failed, but I do think that there is something that can be learned from him.
Keep pressing on with the various goals you have in life, even when you continually get knocked down.
Creating a mentality of never giving up is something that will help carry you further than you could without it.
It does need to be said that if 4 out of 50 ventures have only been able to continue, then Farnsworth doesn’t have a high success rate.
More simply, according to those stats, he has less than a 1 out of 10 chance of his business ideas working.
But Farnsworth’s track record doesn’t stop there.
Sues And Legal Issues
Back in the 90s, several legal issues have gone awry. I mentioned that Farnsworth started a psychic hotline. It seems that there were around 50 complaints that the FTC (Federal Trade Commission) reported that people had against it.
In 1993, Farnsworth seems to have also filed for bankruptcy. I guess that his business ventures didn’t do as well as he wished they did.
Personally, Farnsworth has been found to have failed to pay income tax on time since 1990. He also had an IRS settlement that was for some $100,000 worth of taxes due.
But his issues don’t end there.
Since 2010 Farnsworth and those he’s associated with have been sued over 8 times. Several of them have left Farnsworth having to pay hundreds of thousands of dollars to those who were suing.
Below are just a few of the suits:
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In 2010, a federal judge in Florida found in favorof a packaging company that sued Farnsworth and Purple Beverages forfailing to pay $90,000. Farnsworth was ordered to pay that amount plusan addtional $12,768.99 in interest for a total of more than $102,000.
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In2011, business partners in Palm Beach brought two related suits againstFarnsworth claiming Farnsworth violated a settlement agreement risingfrom an unspecified dispute. One of the suits was dropped. In theothers, Farnsworth was ordered to pay more than $100,000.
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In2012, a Fort Lauderdale consultancy called Rayman and Associates suedFarnsworth seeking payment under a written consulting agreement for$35,000 related to LTS Nutraceuticals. The suit was eventually settledout of court.
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In 2013, South Florida resident Barry Honig won ajudgment against Farnsworth after having sued him twice for breach ofcontract. According to court filings, Honig says he lent Farnsworth$500,000 in 2007. In 2011, Honig sued for repayment, court documentsshow. Honig and Farnsworth settled, agreeing that Farnsworth wouldtransfer 10 million shares of LTS Nutraceuticals to an escrow account inbenefit of Honig and two business partners; they expected to receive$1.5 million between them, with Honig getting $1 million. According tocourt documents, Honig said Farnsworth never transferred the shares. Ajudge ruled in Honig’s favor.
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Also in 2013, FedEx sued TheSource Vitamin Company, then represented by Farnsworth, saying it wasowed about $26,000. A judge ruled in FedEx’s favor.
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That sameyear, Wells Fargo sued Farnsworth and The Source over $76,000 that thebank claimed Farnsworth owed. Garry Elhalel, the attorney representingWells Fargo, said the case was eventually dropped.
(source)
What Exactly is the MoviePass Scam?
In the unfolding saga of MoviePass, a startling development has emerged in 2023, casting a shadow over its former glory.
Theodore Farnsworth, the ex-CEO of parent company Helios & Matheson, and Mitchell Lowe, ex-CEO of MoviePass, face grave allegations.
Charged with securities fraud and wire fraud, their situation reflects a grim narrative of deception in the corporate world.
MoviePass, which saw a meteoric rise in 2017 with its revolutionary $9.95 monthly subscription for unlimited movie viewing, soared to over 3 million members from a modest 20,000.
Yet, this success story was marred by financial hemorrhaging, leading to its eventual downfall.
The indictment suggests Lowe and Farnsworth falsely represented their business model as sustainable and market-tested.
The irony is palpable – a model initially celebrated for its innovation, is now scrutinized for its viability (and rightfully so, given the circumstances).
Adding to the layers of deception, they allegedly boasted about leveraging ‘big data’ and ‘artificial intelligence’ to profit from subscriber information.
Claims of developing diverse revenue streams and reducing costs now appear as mere facades to conceal a dire financial reality.
The government’s accusation that they actively hindered subscribers from using the service to limit losses paints a picture of desperation.
The FBI’s statement on this “attempted scam” resonates with a warning: such acts severely undermine public trust in financial markets.
This commitment to exposing fraud and holding the perpetrators accountable is a stark reminder of the fragility of trust in the financial sector.
Farnsworth’s spokesman, Chris Bond, insists on his client’s innocence, pointing to the SEC’s previous allegations and highlighting Farnsworth’s intent to contest the charges vigorously.
The narrative of acting in good faith remains a cornerstone of his defense strategy.
Lowe’s journey, chronicled in a memoir detailing his experiences at Redbox and Netflix, now includes this contentious chapter.
My take on this alleged fraud is cautious skepticism. If an offer seems too good to be true, it often is.
Before subscribing to any plan, a thorough review of terms and conditions is prudent to avoid falling prey to enticing yet unsustainable offers.
How is Ted Farnsworth Today?
The professional trajectory of Ted Farnsworth, formerly of Vinco Ventures (BBIG), took a sharp turn toward legal entanglements.
Arrested in New York under allegations of an illicit fraud scheme, this shift, initiated by the Justice Department in late 2022, starkly contrasts his previous corporate achievements.
Bloomberg Law notes that Farnsworth’s release on a $1 million bond was laden with strict conditions, including regular updates to his probation officer.
Yet, a subsequent no-bond arrest warrant issued by the Florida District Court indicates a possible breach of these terms.
This scenario underscores the law’s impartiality, even towards figures of Farnsworth’s stature.
Notably, his removal from executive positions at Helios and Matheson Analytics and MoviePass by Vinco Ventures’ Board just months earlier perhaps hinted at emerging troubles.
Farnsworth, alongside Mitchell Lowe, is charged with misleading investors about their movie subscription service, allegedly inflating the stock value of Helios & Matheson Analytics through deceitful practices.
They’re accused of manipulating data and limiting subscriber access to services, facing serious charges of securities and wire fraud, which could lead to a 20-year prison sentence if convicted.
Their trial in the Southern District of Florida is highly anticipated.
Further complicating matters, Vinco Ventures’ shareholders accuse the board, including Farnsworth, of fraudulent activities for personal gain.
Legal expert Mark Basile’s deep dive into these allegations could potentially lead to a federal lawsuit, exploring claims of self-dealing and illegal transactions.
Amidst these legal battles, Basile’s investigations and recent board resignations at Vinco Ventures suggest a broader scope of misconduct.
My advice in such scenarios is cautious diligence. Overly attractive business propositions should be approached with skepticism, ensuring a thorough review of all terms and conditions.
Is Ted Farnsworth A Scam Artist?
I don’t know Farnsworth personally, nor do I know his character. From what I’ve seen and looked into, I wouldn’t go as far as to say that Farnsworth is a scam artist.
Having said that, I don’t think that Farnsworth is exactly working on the right side of the law. You shouldn’t need to get sued that many times, nor have the IRS come after you.
Ted Farnsworth is a guy who has had past business venture failures, along with a long history of legal issues and actions against him personally, and his businesses. Because of this, I would have as little dealings with Farnsworth as I could.