[ad_1]
A low-budget horror film actor whose most lucrative role was to defraud deep-pocketed investors admitted on Monday that he was running a multi-million dollar Hollywood Ponzi scheme. Zachary Horwitz, 34, appeared in federal court in downtown Los Angeles and pleaded guilty to a single count of securities fraud carrying a maximum sentence of 20 years in prison. As part of a plea deal that dropped other charges of wire fraud and identity theft resulting in decades in more jail, Horwitz admitted to fooling wealthy private investors into giving him more than $ 650 million. of dollars.
Horwitz sat quietly in the courtroom as a federal prosecutor read the agreement. He explained how Horwitz made false promises claiming that investor money would be used to buy regional distribution rights for television and film projects, which would then be licensed to platforms such as HBO and Netflix. While he used some of the money to pay off early investments and keep his scam going, prosecutors say Horwitz used more than $ 5 million to finance his “lavish lifestyle” by buying a house in two story luxury in the Beverlywood district of Los Angeles, finished with a swimming pool, home gym and private screening room.
More from Rolling Stone
Horwitz admits to defrauding at least five investors out of $ 230 million. In an example included in his plea deal, Horwitz says he tricked an Illinois investor into sending him over $ 1.4 million in December 2018 with the false promise that the money was buying some distribution rights. international to Active measures, a (real) documentary exploring the alleged collusion between the Trump campaign and Russia.
When he began to default on payments to customers at the end of 2019, Horwitz began making emails with the addresses “@ hbo.com” and “@ netflix.com” to “rock” his investors into believing them that their money was still “safely invested” and that all the delays were “caused by the actions of online streaming platforms”, according to the plea deal.
Horwitz, who used the stage name Zach Avery when he starred in The devil below and You’re not alone, falsely told investors that his company, 1inMM Capital, was so adept at acquiring the film distribution rights and licensing them to major online platforms that it could offer mind-boggling 25-40 rates of return. % on their investments, prosecutors said when billed earlier this year.
Horwitz was out of custody and accompanied by members of his family when the plea hearing was changed. He assured the judge that he was aware of the maximum sentence of 20 years and that he was not under the influence of any substance before changing his plea. The judge then warned that the prison sentence was virtually guaranteed when he was sentenced to January 3.
“I understand that, Your Honor,” Horwitz said.
“Do you plead guilty because you are guilty?” US District Court Judge Mark Scarsi asked.
“Yes, your honor,” replied Horwitz.
Judge Scarsi allowed Horwitz to remain out of custody on a $ 1 million bond guaranteed by his mother’s home and an ankle monitor until his conviction.
“Sir. Horwitz has always understood the gravity of the circumstances, the importance of the sums of money at stake and that this day would come,” his lawyer Anthony Pacheco told the court.
“Sir. Horwitz has accepted responsibility for his actions, and today’s plea is an important step in that process of accepting responsibility,” said defense attorney Ryan Hedges. Rolling stone after the hearing.
The best of Rolling Stone
[ad_2]
Source link