SEC Secures Court Judgment Against Investor Fraud Involving False and Misleading Statements

The U.S. Securities and Exchange Commission (SEC) announced securing a court consent judgment against Theodore J. Farnsworth for defrauding investors in Vinco Ventures, Inc., a purported digital media and content technologies company.

Filed on December 23, 2024, the SEC's complaint alleges that between January 2021 and April 2023, Farnsworth secretly controlled Vinco, in part through his control over hand-selected officers and directors. Farnsworth concealed his role at Vinco due to ongoing investigations by the SEC and the Department of Justice into his conduct in connection with movie subscription company MoviePass, Inc., and its parent company, Helios & Matheson Analytics, Inc. (HMNY).

The SEC’s complaint further alleges Farnsworth planned to merge his private entity, Zash Global Media and Entertainment Corporation, into Vinco. He authorized press releases and filings with the SEC that falsely described the capabilities of Vinco and Zash. Farnsworth allegedly exaggerated the revenue expectations and capabilities of two affiliated companies to mislead investors, ultimately extracting millions of dollars from Vinco for personal gain.

Farnsworth has consented to a judgment that includes permanent injunctive relief and a bar from serving as an officer or director. The SEC is seeking disgorgement, prejudgment interest, and civil penalties, to be determined by the court later.