American actor Zachary Joseph Horwitz, better known as Zach Avery, was arrested on charges of fraud with 227 million of dollars through a pyramid scheme, the California Central District prosecutor’s office reported on its website Tuesday.
According to the complaint, Horwitz, 34, was invited to invest in his company, 1inMM Capital LLC, which he said would use the money to purchase film rights for distribution abroad, particularly in the Latin American market. Using online platforms such as Netflix and HBO. Private investment firms have transferred approximately $ 227 million to the accounts of 1inMM Capital LLC.
However, he created a ‘Ponzi scheme’, using the victims’ money to pay former investors. He also used some of these resources to fund his lifestyle, including the purchase of a $ 6 million luxury home in Los Angeles.
Investors started to worry in 2019, after 1inMM Capital defaulted on the notes several times. However, to convince them and renew the scam plan, Horwitz apologized allegedly given by Netflix and HBO, and sent false correspondence from the platforms to investors.
The actor is currently in custody and the next hearing in his case will take place on May 13. If convicted, he could face up to 20 years in prison.
Avery founded Los Angeles-based 1inMM Capital LLC in 2013 and claimed to distribute English-language films to the Latin American market through partnerships with HBO and Netflix, the US Department of Justice investigative agency reported.
In 2015, it reportedly sent investors bottles of Johnny Walker whiskey, along with an annual report stating that the company had “successfully acquired and distributed 49 films through 1inMM Capital without incurring any losses”.
Also – according to the Los Angeles Times – he claimed to have expanded his partnership with Netflix and HBO to distribute movies to Australia and New Zealand.