Former Vinco Ventures (BBIG) co-CEO Ted Farnsworth was arrested in New York on Wednesday for an alleged illegal fraud scheme that was rooted by the Justice Department back in November of 2022.
Bloomberg Law reports that following the initial arrest, Theodore Farnsworth was released on a $1 million bond, with special conditions, one of which required to notify his probation officer of his whereabout and travels, but failed to do so.
However, a new filing from the District Court of Florida states that Farnsworth’s current arrest warrant states “Bail Fixed at: no bond”, and is related to a bonds violation.
Upon the arrest of the defendant, he is to be brought before the Duty Magistrate Judge only for the purpose of advising the defendant of the charges against him and appointed of counsel.
On July 24, 2022, just four months prior to the allegations, the Board of Directors of Vinco Ventures, Inc. terminated Theodore Farnsworth, the former CEO of Helios and Matheson Analytics and Chairman of MoviePass.
Farnsworth alongside partner Mitchell Lowe were charged with misleading investors and making false statements about the movie subscription service to boost the stock price of its parent company, Helios & Matheson Analytics.
The Justice Department said Farnsworth and Lowe are alleged to have falsely claimed that the number of tickets MoviePass subscribers were purchasing as part of their subscription was declining over time.
Instead, the pair had directed employees to implement tactics to prevent subscribers from using their unlimited service, according to prosecutors.
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.
The initial trial was set to begin in the US District Court for the Southern District of Florida on September 9.
Ted Farnsworth and other Vinco Ventures executives are facing massive scrutiny as shareholders of the company have also accused the board of defrauding investors to further their own self-interest.
What is Happening with BBIG Today?
Aside from the most recent news of Ted Farnsworth being arrested for an illegal fraud scheme, the former co-CEO is also facing allegations from shareholders of Vinco Ventures.
Plaintiffs have hired the services of Mark Basile, who is also working on the MMTLP motion, to investigate the last 4 years of corporate board actions.
Some of these actions include claims of self-dealing and self-enrichment, diversion of assets, unlawful funding transactions, and breach of numerous possible laws and violations.
“This investigation is not being limited to the Board of Directors, but will also include all funders, professionals and consultants that have counseled, approved, recommended or facilitated the above,” said Mark in a statement.
“We are just getting our feet wet on this matter, but do have a lot of colorful background supplied to us by the great BBIG community.
The recent Board resignations are troubling, perhaps directly connected with the local Nevada State Court action brought by a few shareholders looking for information on board activities.
But if they think that the State court action is the end of it, well, they may have another thing coming.
I cannot comment on the substantive issues just yet, but we are looking into the entire scope of potential wrongdoing that may result in a federal lawsuit under certain Securities and/or RICO laws,” Basile commented exclusively for FrankNez.
Plaintiffs recently filed an emergency motion after a Receiver was denied in court.
BBIG stock has now been moved to the OTC Markets.
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