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On Tuesday, actor Zachary Horwitz (known professionally as Zach Avery) was arrested for wire fraud, as reported by the Los Angeles Times.
The FBI and the SEC allege that Horwitz directed a Ponzi scheme through his company, 1inMM, which defrauded investors of $ 227 million.
Apparently, Horwitz told investors his company invested in the film rights, then reselling those rights to distributors like Netflix and HBO. He allegedly sold people on his plan by showing them fake license and distribution agreements, with forged signatures. Ultimately, however, both of the above companies confirmed to the FBI that they had never done business with 1nMM.
Horwitz is believed to have started receiving funds under the Ponzi scheme in 2015, using them to buy a $ 6 million house in the Beverlywood neighborhood of Los Angeles, while paying off previous investors.
Horwitz’s credits as an actor include low budget features such as Intruders and The devil below. His assets are currently frozen, with the charges against him carrying a maximum sentence of 20 years in prison.
According to the Times, Horwitz was released earlier today on a guaranteed million dollar bond – but his arraignment is scheduled for May 13.
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