An actor named Zachary Horwitz, who works beneath the display screen identify Zach Avery, was arrested on Tuesday for allegedly defrauding buyers of over $690 million. It is not the primary Ponzi scheme to have been recognized in Hollywood, however it might be one of many greatest.
An affidavit by FBI agent John Verrastro, quoted by The Hollywood Reporter, particulars the crimes Horwitz has been accused of. Together with his firm 1inMM Capital, Horwitz allegedly went to buyers utilizing fraudulent distribution agreements with massive corporations corresponding to HBO and Netflix. Not solely have been the distribution offers non-existent, however the film rights 1inMM Capital claimed to carry have been additionally fraudulent.
When the corporate began defaulting on promissory notes, Horwitz allegedly handed the buck on to his supposed companions, manufacturing emails from HBO and Netflix that gave excuses corresponding to an audit and an organization restructuring.
Horwitz allegedly put a number of the cash in direction of a home that included a house theatre, gymnasium, wine cellar, and grand piano. Photos of the mansion are included as a part of the FBI’s affidavit. A part of the funds have been used to repay earlier buyers, which Verrastro says is in line with how a Ponzi scheme is operated.
Netflix and HBO apparently performed a job in unravelling the scheme. Horwitz faces up to 20 years in prison.