Actor and film investor Zachary Horwitz, who is typically credited as Zach Avery, was arrested Tuesday on expenses that he ran a Ponzi scheme that swindled buyers out of $227 million.
Horwitz, 34, was taken into custody by particular brokers with the FBI, the U.S. Attorney’s Office reported. Horwitz claimed buyers’ cash could be used for shopping for rights to movies that HBO and Netflix had signed on to distribute internationally, notably in Latin America.
Horwitz appeared Tuesday in United States District Court on a cost of wire fraud, which carries a statutory most penalty of 20 years in jail.
The criticism alleges that Horwitz solicited buyers for his firm 1inMM Capital LLC, saying he would buy the regional distribution rights to movies after which license the rights to platforms together with Netflix and HBO. His promotional supplies claimed the corporate supplied “secure” investments as a result of “we obtain affirmation from every of our outputs indicating their want to amass the rights to any title we buy PRIOR to us releasing funds for the movie.”
But as an alternative he used the victims’ funds to repay earlier buyers and purchase a $6 million Beverlywood residence, based on prosecutors.
Horwitz supplied buyers with faux licensing and distribution agreements with Netflix and HBO which contained solid and fictional signatures, the prosecutors allege. Representatives for Netflix and HBO denied that they’ve engaged in any enterprise with Horwitz or his firm, based on the affidavit.
The distribution paperwork for movies reminiscent of “Bitter Harvest,” “Active Measures” and “Divide and Conquer” had been purportedly signed by firms together with Sierra/Affinity. Sierra/Affinity additionally said within the affidavit it had no enterprise relationship with Horwitz.
The firm’s annual report additionally pictured dozens of movies in its “library” reminiscent of Jean-Claude Van Damme’s “Kickboxer” and James Ponsoldt’s “The Spectacular Now.”
Horwitz has appeared in a number of low-budget films such because the horror movie “The Devil Below.”
A U.S. Magistrate Judge set Horwitz’s bond at $1 million, with an arraignment scheduled for May 13.
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