In an actual scheme that could easily constitute the plot of a network proceeding or a limited series, HBO and Netflix helped the funds bring to justice a Hollywood wannabe who cheated investors out of hundreds of millions of dollars.
Zachary Horwitz, who went by the screen name “Zach Avery”, was arrested by the FBI yesterday on criminal charges that he allegedly failed more than $ 227 million from fans who thought they would make money with license rights to films by the WarnerMedia cable and the streamer in Latin America.
‘In fact, neither HORWITZ nor 1inMM Capital ever did email correspondence with Netflix or HBO, nor did HORWITZ or 1inMM Capital ever have any business relationship.
at least with Netflix or HBO, ”said an April 5 affidavit from FBI Special Agent John Verrastro of The Devil Below actor and his 2013 formed film distribution Shingles. “The email exchanges and license agreements were false,” Verrastro added (read the statement here).
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However false, the high-ranking Horwitz has run the scam quite successfully for a number of years with few questions asked by his avid investors. By literally getting findings from Paul to pay Peter, so to speak, Horwitz was able to offer more support and drive the promised 25% return on the scheme to JJMT Capital, LLC, in Chicago. For more than five years, the spectacle showed the financial triumph and allowed Horwitz to get a $ 6 million Beverlywood straw and other trinkets.
At the end of 2019, 1inMM began neglecting its debentures with demands for time-consuming audits and corporate restructuring at Netflix and HBO.
“To extend the scheme and maintain the illusion that 1inMM Capital was a legitimate business following these increasing defaults, HORWITZ JJMT falsely suggested that the online platforms refused to pay on time for the distribution rights as mandatory, and provided excuses to allegation by Netflix and HBO, ”Verrastro’s statement continued.
“In support of these allegations, HORWITZ repeatedly sent JJMT emails in which he forwarded alleged email correspondence with Netflix and HBO employees, respectively, to discuss the underlying license agreements,” the paperwork says of the extensive and clearly falsified goals to which Horwitz went. keep the good times rolling.
As with any good drama, there are also some nice choices here.
Melinda LeMoine, director of Content Litigation and senior legal administrator of WarnerMedia, Patrick Younan, clearly cooperated with the feds and appeared in the statement. Both executives signed the FBI on the matter and the fact that neither of their organizations had any relationship with Horwitz and 1inMM.
‘In fact, Ms. LeMoine sent a letter of resignation to HORWITZ on February 12, 2021, both through his LinkedIn account and through his attorney, ‘the statement said.
The letter states that Netflix understands that HORWITZ and its company 1inMM Capital used forged documents to suggest to third parties that 1inMM Capital had licensing agreements with Netflix, but that Netflix did not in fact have such agreements with 1inMM Capital or HORWITZ “The document from the FBI Special Agent reads. “The letter further states that HORWITZ used fabricated e-mails that were allegedly exchanged with a Netflix employee to let others know that he expects to receive money from Netflix, and that the e-mails are also fraudulent. is. The letter demands that HORWITZ stop making misrepresentations about his agreements with Netflix. ”
Neither Netflix nor HBO commented on the case today when contacted by Deadline.
On April 6, Horwitz will appear in U.S. District Court to face the music of prosecutors, United States Assistant Attorneys Alexander Schwab and David Chao of the Grand Fraud Division.
With the criminal charge against him now unsealed, the ‘self-described Hollywood entrepreneur’ faces 20 years behind bars if convicted of the wire fraud charge. The presiding judge set Horwitz’s mortgage at $ 1 million, and he was released late Tuesday after the cash issue was settled.
Currently, an arrangement is on the court calendar for May 13 in the case.
Who knows, an adaptation of this wild ride may be developed by that time.