A lesser-known actor in Los Angeles was reportedly arrested by the FBI on Tuesday for allegedly running a huge Ponzi scheme where he deceived investors by lying about the success of his film distribution company.
Zachary Horwitz, 34, who had roles in small films under the name Zach Avery, is accused of cheating investors out of $ 227 million and using most of the money for himself, reports The Los Angeles Times, citing federal authorities.
Horwitz allegedly misled the investors by falsely claiming that his company, 1inMM Capital LLC, had film license transactions with Netflix, HBO and other platforms, the newspaper reported.
He also told investors his company distributes 52 films in South America, Africa and Australia, according to court reports obtained by the newspaper, and gives its funders bottles of expensive Johnny Walker Blue Label dish.
The actor owes investors about $ 227 million, which has paid them 160 payments since 2019, according to the FBI.
He is charged with wire fraud. Horwitz was released on Tuesday’s decision on a $ 1 million mortgage.