LA Actor Zachary Horwitz Arrested In $227M Ponzi Scheme – CBS St. Louis
LOS ANGELES (CBSLA) – A 34-year-old Los Angeles actor was arrested on charges of challenging investors with a staggering $ 227 million in an elaborate Ponzi-related program related to movies.
Zachary Joseph Horwitz of Beverlywood, known as Zach Avery, was arrested Monday by the FBI for convincing several investment firms to give him nearly a quarter of a billion dollars over five years, which he falsely claimed they would be used to acquire global licensing rights for the distribution of films on streaming services such as Netflix and HBO.
He was taken into custody for federal fraud.
According to the U.S. Attorney’s Office, starting in 2015, Horwitz used fake promotional materials about his company 1inMM Capital LLC to trick investors into giving him money that he said was intended to be used to purchase film distribution licenses.
He provided investors with fake license agreements and fake distribution agreements with Netflix and HBO. Both companies have said they have not done such deals with Horwitz, the US law firm said.
Investors gave him six-month and one-year promissory notes, each intended to be used to acquire the rights to a particular film.
Instead, the money went into his exorbitant lifestyle, including buying a $ 6 million home in Beverlywood, according to prosecutors. It also went to repay previous investors.
When he started defaulting on the Notes in 2019, he forwarded completely fake correspondence to investors allegedly from executives at HBO and Netflix.
Horwitz first appeared in federal court in downtown LA on Tuesday, where his bail was set at $ 1 million. His indictment is scheduled for May 13th.
He faces up to 20 years in prison if convicted as a defendant.
Horwitz’s films include “The Devil Below” and “You’re Not Alone”.