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An actor who was arrested earlier this year for allegedly defrauding investors over $ 650 million by falsely claiming to have made deals with major media companies has agreed to plead guilty to one count of securities fraud, according to court documents.
In April, Zachary Horwitz, 34, was arrested after the Securities and Exchange Commission (SEC) accused him of directing a Ponzi scheme that resulted in $ 277 million in fraudulently acquired funds owed to investors. .
Horwitz is said to have lured potential investors by showing them fake emails giving the impression that his company, 1inMM, was in the process of acquiring the distribution rights for large media companies.
The SEC said 1inMM had no relationship with HBO or Netflix, as Horwitz had suggested.
Documents filed with the United States District Court for the Central District of California showed that Horwitz agreed to plead guilty and repay all criminal debts as ordered by the court. The plea agreement stipulates that Horwitz will be required to “pay the full restitution” to the victims of his alleged scheme.
Horwitz faces up to 20 years in prison and millions of dollars in fines.
US District Judge Mark C. Scarsi has scheduled a sentencing hearing for January 3.
“Mr. Horwitz has accepted responsibility for his actions, and yesterday’s plea is an important step in this process of accepting responsibility,” said the law firm representing Horwitz when contacted by The Hill .
Low Budget Horror Film Actor Zachary Horwitz Admits To Directed Ponzi Scheme That Bribed $ 650 Million Hollywood Investors https://t.co/12efG54bQG pic.twitter.com/WlGIwcJwGa
– Rolling Stone (@RollingStone) October 5, 2021
According to prosecutors, the Horwitz scheme began in 2014 and was still intact in 2021, informing investors in March that a return on investment was imminent.
“Instead of using the funds to acquire films and make distribution deals, Horwitz exploited 1inMM Capital as a Ponzi scheme, using victims’ money to pay off previous investors and fund his own lifestyle, including the purchase of his $ 6 million residence in Beverlywood, ”he added. The California Central District Attorney’s Office said in a statement.
“Horwitz defrauded five major private investor groups, but these entities drew funds from more than 250 sub-investors. At the end of 2019, 1inMM Capital began to default on all of its outstanding promissory notes, according to the agreement. plea, in which Horwitz admits he owes investors more than $ 230 million and that his scheme has caused significant financial hardship for at least five investors, ”the prosecutor’s office added.
As an actor, Horwitz, who also goes by Zach Avery, has appeared mainly in small sci-fi and horror films. He appeared in the 2014 war film “Fury,” starring Brad Pitt and Shia LaBeouf, in which he had an uncredited role as a medic.
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