Hollywood actor accused of running $227M Ponzi scheme

biborg · 04-08-2021, 02:00 AM

Quote:Actor Zachary Horwitz has been arrested on charges of running a Ponzi scheme to swindle investors out of US$227 million.

The actor, who is also credited as Zach Avery, was taken into custody by FBI special agents on Tuesday, and appeared in United States District Court on a charge of wire fraud.

According to the complaint, Horwitz told investors that their money would be used for buying rights to films that streaming services HBO and Netflix had signed on to distribute internationally. In his promotional materials, he claimed that his company 1inMM Capital LLC was able to offer “safe investments” because “we receive confirmation from each of our outputs indicating their desire to acquire the rights to any title we purchase PRIOR to us releasing funds for the film.”

He is said to have used documents with fake licensing and distribution agreements with Netflix and HBO, complete with forged signatures, to convince investors to come on board.

However, he allegedly then used the funds to repay earlier investors, as well as purchasing a $6 million home in Beverlywood, according to prosecutors.

Horwitz, who has appeared in several low budget movies including horror film The Devil Below, is now being held on a bond of $1 million. He will be arraigned on May 13, and faces up to 20 years in prison.

Representatives for Netflix, HBO and Sierra/Affinity, a company alleged to have signed distribution documents for movies Bitter Harvest, Active Measures and Divide and Conquer for Horwitz, all provided affidavits stating that they have never engaged in any business with the actor.

https://deadline.com/2021/04/netflix-hbo...234729403/