Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Actor Zachary Horwitz is accused of the Hollywood Ponzi scheme

Actor Zachary Horwitz is accused of the Hollywood Ponzi scheme

Ambitious film actor Zachary Horwitz was accused on Tuesday of being described by federal investigators as one of Ponzi’s boldest schemes in Hollywood history.

Horwitz, who appears in horror films and science fiction films with the screen name Zack Avery, has been charged by the federal grand jury with five points for securities fraud, six points for physical fraud and two for aggravated identity theft. From 2014 to 2019, according to prosecutors, he lied to investors to secure $ 690 million in loans to his film company 1

inMM Capital.

Horwitz was arrested on April 6 on initial charges of fraud and spent more than two weeks in prison before his release on $ 1 million bail.

Horwitz told investors he was using their money to buy the rights to hundreds of movies and resell them to Netflix, HBO and other distribution platforms abroad, mainly in Latin America, according to the government. But the contracts for HBO and Netflix, which he showed to investors, are fake, prosecutors say.

Horwitz is, in fact, using loans from one group of investors to repay what he has borrowed from another – and taking millions of dollars to finance his “rich lifestyle,” the prosecution said.

More than 200 investors, including three of the college’s closest friends and family members, have lost about $ 230 million, the government said.

The Securities and Exchange Commission, which froze Horwitz’s assets, is trying to track what happened to all the money.

His initial accounts identified less than $ 9 million in Horwitz spending, including $ 5.7 million for a house in Beverwood with a pool, gym, screening room and wine cellar; $ 165,000 for high-end cars and $ 137,000 for charter jets.

Horwitz also spent at least several million dollars to fund the films in which he appeared, including The White Crow, The Last Moment of Clarity, Agriculture, and Portal, according to a man who worked with him. The source of this money is unclear.

Zachary Horwitz's former home in Beverlywood.

Federal investigators say actor Zachary Horwitz spent $ 5.7 million he acquired on a bold Ponzi scheme at this Beverlywood house with a pool, gym, screening room and 1,000-bottle wine cellar.

(Jason Armond / Los Angeles Times)

After five years of steady repayment of loans to investors with interest and on time, Horwitz suddenly began to default at the end of 2019. As payment demands and threats intensified, he tried to reassure his creditors that he was working with HBO. and Netflix to collect the money they owe him.

Prosecutors allege he fabricated emails from HBO and Netflix executives to detain investors, sparking new allegations of identity theft.

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