The The US Securities and Exchange Commission has obtained an asset freeze to stop an alleged $ 690 million Ponzi regulation Managed by a Los Angeles actor who lied about having deals to sell movies to Netflix Inc. and HBO.
Zachary Horwitz and his company, 1inMM Capital LLC, claimed he was raising money to buy movies he planned to resell, the SEC said on Tuesday. statement. In reality, he had no business relationship with Netflix or HBO and relied on fabricated contracts and fake emails to scam investors, the regulator said.
The United States Department of Justice has a separate statement that the FBI had arrested Horwitz on Tuesday. He uses the screen name ‘Zach Avery’ and was criminally charged with raising $ 227 million to be repaid as part of a regulation in which he falsely claimed he would acquire rights to films that Netflix and HBO would distribute abroad, the statement said.
A lawyer representing Horwitz did not immediately respond to an email requesting comment.
Although Horwitz promised investors that they would achieve returns of more than 35%, he actually relied for years on money raised from new clients to pay off previous clients, the SEC said. He used the money for his personal expenses, including buying a home, traveling to Las Vegas and hiring a famous interior designer, the agency said.
A federal court in California held a hearing on April 19 to determine whether the asset freeze should be upheld if a lawsuit against Horwitz continues, the SEC said.
Updates to add Attorney Attorney in fourth paragraph.