Zachary J. Horwitz, a minor actor, was arrested in Los Angeles on Tuesday on a federal charge of running a massive Ponzi scheme that defrauded investors of $ 227 million through fictitious film licensing deals with HBO, Netflix and deceive other platforms.
Horwitz, 34, who appeared in underage films under the stage name Zach Avery, is accused of fabricating emails from HBO and Netflix executives about non-existent film distribution deals in an attempt to divert investors’ demand for payment. again.
In an affidavit filed in federal court in Los Angeles, FBI agent John Verrastro set out an audacious plan by Horwitz to persuade investors to pour large sums of money into his film distribution company 1inMM Capital LLC.
Horwitz sent bottles of Johnny Walker Blue Label subjects along with an annual investor report in 2015 highlighting a “library” of 52 films his company is likely to distribute in Africa, Australia, New Zealand and South America, according to Verrastro. These included the horror film “The Lords of Salem” in 2012 and the action film “Kickboxer” from 1989 with the martial artist Jean-Claude Van Damme.
In fact, the FBI said, Horwitz had no license transactions and diverted much of the money for personal gain.
Horwitz also falsely accused investors of having “strategic partnerships” with HBO, Netflix and other platforms to license the foreign distribution rights. The investors promised returns of up to 40% within a year.
According to the FBI, since December 2019, Horwitz’s company has failed to make more than 160 payments due to its investors. Its largest investor, JJMT Capital, LLC, of Chicago, owes more than $ 160 million in capital and about $ 59 million in investment profits, Verrastro said.
According to the FBI, Horwitz owes investors only $ 227 million in principal.
FBI agents arrested Horwitz on Tuesday morning on charges of wire fraud at his home in Beverlywood. According to the FBI statement, they also searched the house for evidence of security and mail fraud, money laundering and other crimes. The home is being offered for sale at $ 6.5 million on Zillow.
Horwitz’s attorney, Anthony Pacheco, did not immediately respond to a request for comment.
Horwitz has been acting professionally for over a decade, but none of his films are known. As Zach Avery, he appears in the 2018 sci-fi thriller “Curvature”. A stylish sci-fi thriller ‘Curvature’ captured in the first dimension. ‘ A critic of the Variety said that the film ‘wants to make the heart blow and the mind must bend at the same time, but is a flat line in both departments. ‘
Horwitz appeared in court in downtown Los Angeles Tuesday afternoon through a video.
“Do you understand what the government is claiming you did wrong?” U.S. Magistrate Jean P. Rosenbluth asked him.
“Yes I do,” he replied.
Assistant U.S. Attorney Alexander Schwab urged Rosenbluth to detain Horwitz until the trial and said he would flee if released.
“The chances of the accused running away from the money are quite high,” he said.
Rosenbluth shared the concern, saying: “There is a lot of money, unlisted quotation, missing here.”
But she agreed to release Horwitz on a $ 1 million mortgage.