Former MoviePass chief executive Mitch Lowe admitted guilt on Monday to a charge of securities fraud, confessing that he participated in a scheme to mislead the public and investors about the viability of the company’s $9.95-a-month movie subscription service.

Lowe, 72, faces a maximum of five years in federal prison. His plea deal has not yet been made public.

“Mitch is a good man who is looking to move forward with his life,” said his attorneys, Margot Moss and David Oscar Markus, in a statement. “He has accepted responsibility for his actions in this case and will continue to try to make things right.”

Ted Farnsworth , the former CEO of parent company Helios and Matheson, is scheduled to face a trial on the same charges next March.

Farnsworth, 62, has been detained by federal authorities since August 2023, when his bond was revoked after he allegedly used company funds to pay for a sex worker.

Farnsworth and Lowe were the masterminds behind MoviePass's doomed all-you-can-watch subscription, which led to hundreds of millions of dollars in investor losses in 2017 and 2018. Investigators found that Lowe attempted to mitigate the losses by limiting the service, forcing high-volume users to reset their passwords and confirm their tickets.

The two individuals were indicted in November 2022 on charges of wire fraud and securities fraud.

Lowe remains free on bond, and is scheduled to appear in court in Miami on March 21 for a status conference. Lowe published a memoir in 2022 in which he reflected on the downfall of MoviePass, entitled “Watch and Learn: How I Turned Hollywood Upside Down with Netflix, Redbox, and Moviepass.”

Farnsworth was initially freed on a $1 million bond, but prosecutors sought to cancel his release after a string of incidents in 2023.

According to police reports, Farnsworth engaged in altercations with a former romantic partner in Baldwinsville, N.Y., which resulted in multiple restraining orders. Farnsworth accused the man of choking him and pushing him onto a stairway at their shared residence. The man, 28, accused Farnsworth of damaging his phone and a necklace during a subsequent confrontation at a hotel.

Farnsworth allegedly also paid $147,000 to the man, whom he encountered on an escort website, using funds from a company account. He also purchased a $144,000 Cadillac Escalade using company funds, according to prosecutors. Federal investigators determined that the man was unaware of the company's nature and had never been employed by it. When the two separated, Farnsworth falsely accused the man of stealing the Escalade, according to prosecutors.

Farnsworth allegedly neglected to inform his probation officer of the incidents and repeatedly went to Miami without the probation officer's approval.

Prosecutors assert that Farnsworth also engaged with a sex worker in the summer of 2023, sending the individual multiple wire transfers after encountering them on an escort website. They claim that Farnsworth spent the month of June 2023 in Miami with the sex worker, visiting high-end nightclubs and going on luxury shopping sprees.

Farnsworth was in custody when he appeared in court on Monday. His lawyer asked Judge David S. Leibowitz on Monday to delay the trial, but that request was denied.

No sentencing date has been set for Lowe.