A little-known Los Angeles actor was reportedly arrested by the FBI on Tuesday for allegedly directing a huge Ponzi scheme in which he tricked investors into lying about the success of his film distribution company.
Zachary Horwitz, 34, who has had roles in small films under the name Zach Avery, is accused of cheating investors by $ 227 million and using most of the funds for himself, he reported. The Los Angeles Times, citing federal authorities.
Horwitz allegedly lured investors into falsely claiming that his company, 1inMM Capital LLC, had movie license agreements with Netflix, HBO and other platforms, the newspaper reported.
He also told investors that his company distributed 52 films in South America, Africa and Australia, according to court records obtained by the newspaper, and gave his financiers expensive bottles of Johnny Walker Blue Label.
The actor owes investors about $ 227 million, counting 160 payments to them from 2019, according to the report, which cites the FBI.
He is accused of cable fraud. In his lawsuit Tuesday, Horwitz was released with a $ 1 million bond.