Actor Zachary Horwitz (professionally known as Zach Avery) was arrested Tuesday on charges of wire fraud, as reported by the Los Angeles Times.
The FBI and SEC allege that Horwitz managed a Ponzi scheme through his company, 1inMM, which defrauded investors of $ 227 million.
Horwitz allegedly told investors that his company had invested in film rights and subsequently sold those rights to distributors such as Netflix and HBO. He allegedly sold people on his plan by showing them fake license and distribution agreements with forged signatures. Eventually, 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 money in 2015 as part of the Ponzi scheme, using it to buy a $ 6 million home in the Beverlywood area of Los Angeles, while earlier repaying investors.
Horwitz’s credits as an actor contain low budget functions such as Entrants and The Devil Below. His assets are currently frozen, with the charges against him serving a maximum sentence of 20 years in prison.
According to the Times, Horwitz was released earlier today on a $ 1 million mortgage – but his decision is scheduled for May 13.