Actor Zachary Horwitz Arrested For Film Rights Ponzi Scheme
On Tuesday, actor Zachary Horwitz (known professionally as Zach Avery) was arrested on charges of wire fraud, as reported by the Los Angeles Times.
The FBI and SEC allege that Horwitz ran a Ponzi scheme through his company, 1inMM, which defrauded investors of $227 million.
Allegedly, Horwitz told investors that his company invested in film rights, subsequently reselling these rights to distributors like Netflix and HBO. He is said to have sold people on his scheme by showing them fake licensing and distribution agreements, featuring forged signatures. Ultimately, however, both of the above companies confirmed to the FBI that they’d never conducted business with 1nMM.
It is believed that Horwitz began receiving funds as part of the Ponzi scheme in 2015, using them to purchase a $6 million home in the Beverlywood neighborhood of Los Angeles, while repaying earlier investors.
Horwitz’s credits as an actor include low-budget features such as Trespassers and The Devil Below. His assets are currently frozen, with the charges against him carrying a maximum penalty of 20 years in jail.
According to the Times, Horwitz was released earlier today on a $1 million secured bond—but his arraignment has been scheduled for May 13.
Read More About:
Source: Read Full Article