At first glance, Zachary Horwitz, 34, appears to be the stereotypical wannabe actor, trying to build his career in Hollywood by taking on a series of low-impact roles.
But while starring in small-budget films, Horwitz also ran a $ 690 million Ponzi scheme, according to the Securities and Exchange Commission (SEC), which used the bad money to build a $ 5 mansion. 7 million for sale in Los Angeles and an extravagant lifestyle.
Acting under the name Zach Avery, Horwitz promised financial supporters a 35% return on their investments by claiming that its distribution company, 1inMM Capital, had licensing agreements with Netflix and HBO, the SEC said.
However, according to the FBI, there was never an amount of $ 227 million in investors.
Horwitz allegedly bought his sprawling home with a built-in cinema, a gym and a wine cellar, with the money not appropriated.
Court documents allege that he also spent more than $ 137,000 on private jets and paid $ 700,000 on a “celebrity interior designer”.
The actor’s apparent financial success is unmatched by his struggling film career. Like Zach Avery, Horwitz played a small, uncredited role in the Brad Pitt World War II drama Fury, but most of his acting was in less award-winning films.
His most recent role is in the thriller Last Moment of Clarity, a film that, according to the Guardian’s report, contains a “lazy-written” screenplay, full of “dull coincidences”.
“The brothers Colin and James Krisel and / or the actor Zach Avery have to be very well funded or ridiculously convincing, because they have managed to put together a supporting cast and budget for this debut thriller that is much more than the text. seems to be fair, “wrote Leslie Felperin, reviewer of Guardian.
Horwitz was arrested Tuesday and charged with wire fraud, a crime that carries up to 20 years in prison.
“We claim that Horwitz promised exceptionally high returns and made it seem plausible by calling the names of two well-known entertainment companies and producing documents,” Michele Wein Layne, director of the SEC’s regional office in Los Angeles, said in a statement. statement said in which he announces the charges. .
Layne said the SEC froze Horwitz’s assets to ‘ensure to the benefit of investors what remains of the money raised by Horwitz’.
The SEC claims that Horwitz showed investors ‘factory agreements’ showing that 1inMM Capital has agreed distribution agreements with Netflix and HBO, and promised a huge return. Instead, Horwitz, “for many years,” “paid back returns on past investments using funds from new investments,” according to the SEC.
Between 2014 and 2019, Horwitz raised more than $ 690 million, the SEC said. Since late 2018, private investment firms have paid $ 227 million to 1inMM Capital, the U.S. Attorney’s Office in the central district of California said. Horwitz apparently failed all payments.
Horwitz’s attorney, Anthony Pacheco, did not immediately respond to a request for comment.