The show biz industry actor indicted for phony HBO and Netflix offers
Aspiring film actor Zachary Horwitz was indicted Tuesday to get running what federal investigators describe as one of the most daring Ponzi schemes in Showmanship history.
Horwitz, who appeared in horror and science-fiction movies underneath the screen name Zach Avery, was charged by a federal grand jury with 5 counts of securities fraud, six counts of wire fraud and two counts of aggravated identity fraud. From 2014 to 2019, prosecutors say, he lied to investors to secure $690 million in loans in order to his film company, 1inMM Capital.
Horwitz was arrested April 6 with an initial fraud charge plus spent more than two weeks in jail before his discharge on a $1-million bond.
Horwitz told traders he was using their money to buy the rights in order to hundreds of movies and re-sell them to Netflix, HBO and other platforms for distribution overseas, mainly in Latin America, according to the government. But the HBO and Netflix contracts he showed investors were bogus, prosecutors say.
Horwitz was actually using financial loans from one group of investors to settle what he’d borrowed through another — and skimming off millions of dollars to fund his “opulent lifestyle, ” the particular indictment charged.
More than 200 investors, including three of Horwitz’s nearest college friends and their particular family members, lost about $230 million, the government says.
The Securities plus Exchange Commission, which has frozen Horwitz’s possessions , has been trying to track what happened to all the money.
Its initial information systems identified less than $9 mil in spending by Horwitz, including $5. 7 mil for a Beverlywood house with a pool, gym, screening area and wine cellar; $165, 000 for “high-end automobiles” and $137, 000 designed for chartered jet flights.
Horwitz also spent at least several million dollars to finance films by which he appeared — included in this “The White Crow, ” “Last Moment of Clearness, ” “Farming” and “Gateway, ” according to a person who else worked with him. The source of that money is unclear.
After five years of steadily repaying his investors’ loans with interest and on time, Horwitz abruptly began defaulting in late 2019. As payment needs and lawsuit threats installed, he tried to reassure their lenders that he was dealing with HBO and Netflix to gather money they owed your pet.
Prosecutors say he or she fabricated emails from HBO and Netflix executives to help keep the investors at bay, compelling the new charges of identification theft.