Los Angeles, United States
Zach Avery, an actor who has appeared in such films as ‘Fury’, ‘The White Crow’ or ‘Under the Same Skin’, has been arrested in Los Angeles after discovering his involvement in a Ponzi scheme that $ 227 million defrauded to various investors through fictitious agreements with HBO, Netflix and other platforms.
The 34-year-old interpreter was accused of sending fake emails posing as executives of HBO and Netflix around non-existent film distribution agreements. In an affidavit filed in federal court in Los Angeles, FBI agent John Verrastro discovered Avery’s plan, which was to convince investors to invest huge sums of money in his distribution company, 1inMM Capital LLC.
Horwitz sent investors an annual report containing a catalog of 52 films that his company reportedly distributed in Africa, Australia, New Zealand and South America, Verrastro’s statement said. This list included titles such as the 2012 horror film The Lords of Salem or Kickboxer, a 1989 production starring Jean-Claude Van Damme.
Avery misled investors into claiming he had “strategic partnerships” with HBO, Netflix and other platforms to license distribution rights abroad, promising them a profitability of up to 40% in one year.
But according to the FBI, the defendant did not have a deal and used much of the money for his personal gain. He used some of the money to buy a Beverlywood home in 2018, which is now for sale for $ 6.5 million. The actor has been charged with wire fraud and could face 20 years in prison if convicted.
As of December 2019, Avery’s company has defaulted on more than 160 payments to its investors. The largest investor, JJMT Capital, LLC, owes more than $ 160 million in equity and approximately $ 59 million in profit. In total, Avery owes approximately $ 227 million to investors.
US attorney Alexander Schwab urged Judge Jean P. Rosenbluth, who is dealing with the case, to keep Avery in custody until his flight risk lawsuit. “The chances of the suspect hiding some of that money is pretty high,” Schwab said. Despite these concerns, the magistrate has set her bail at $ 1 million, but she will remain in police custody until the bail is approved. For the time being, the artist will have to wait until May 13, the date on which his arraignment will take place.