A low-budget film actor was arrested Tuesday on suspicion of running a $ 227 million Ponzi scheme that was soliciting investors for fake film licensing contracts, federal prosecutors said.
Zachary Joseph Horwitz, whose name is Zach Avery, was charged with bank fraud, which carries a maximum legal sentence of 20 years in prison, according to a statement from the U.S. Attorney’s Office. It was not immediately known if Horwitz has a lawyer.
Prosecutors said Horwitz, 34, told investors his money would be used to buy film distribution rights that would be licensed to platforms like HBO and Netflix.
But instead of using the funds to make distribution deals, Horwitz allegedly would operate his company 1inMM Capital as a Ponzi scheme, using the victims ’money to amortize previous investors and finance his own lifestyle, including the buying a $ 6 million home, according to prosecutors.
Representatives from Netflix and HBO have denied that their companies were involved in any business with Horwitz, according to a sworn statement.
Horwitz is expected to be tried on May 13.
Horwitz’s credits as an actor include low-budget features such as “Trespassers,” “The Devil Below,” and “Last Moment of Clarity.”
The latter had Horwitz (Avery) as a derivative in Paris who believes an actress he saw in a movie could be his dead girlfriend. One of the critics wrote that “it makes a good advantage.” The film also starred Samara Weaving and Brian Cox.
Here is a trailer for this film, which was released digitally in May 2020:
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