Actor indicted in $227M Ponzi scheme involving film rights

LOS ANGELES (AP) — An aspiring actor was indicted Tuesday in Los Angeles on suspicion of operating an enormous Ponzi scheme that solicited tons of of tens of millions of {dollars} from buyers for phony Hollywood film licensing offers, federal prosecutors stated.

Zachary Joseph Horwitz, who has appeared in low-budget films beneath the display title Zach Avery, was charged by a federal grand jury with a number of counts, together with securities fraud, wire fraud and identification theft, the Los Angeles Times reported.

It wasn’t instantly recognized if Horwitz has an legal professional.

From 2014 to 2019, Avery allegedly he lied to buyers to safe $690 million in loans to his film firm, 1inMM Capital, prosecutors stated.

More than 200 buyers, together with three of Horwitz’s closest faculty mates and their members of the family, misplaced about $230 million, the Times reported.

Prosecutors stated Horwitz instructed buyers that their cash could be used to buy film distribution rights that might then be licensed to platforms similar to HBO and Netflix.

But as a substitute of utilizing the funds to make distribution offers, Horwitz allegedly operated his firm as a Ponzi scheme, utilizing victims’ cash to repay earlier buyers and to fund his personal way of life, together with the acquisition of a $6 million house, prosecutors stated.

Representatives for Netflix and HBO have denied that their firms engaged in any enterprise with Horwitz, based on an affidavit.

Horwitz was arrested April 6 on an preliminary fraud cost and he spent greater than two weeks in jail earlier than his launch on a $1 million bond, based on the newspaper.



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