On Tuesday, actor Zachary Horwitz (known professionally as Zach Avery) was arrested on charges of wire fraud, the Los Angeles Times reported.
The FBI and SEC allege that Horwitz ran a Ponzi scheme through his company, 1inMM, which defrauded investors of $ 227 million.
Horwitz reportedly told investors that his company invested in film rights and subsequently sold them to distributors such as Netflix and HBO. It is said that he sold to people in his scheme by showing them fake license and distribution agreements, with forged signatures. Ultimately, however, both companies confirmed to the FBI that they had never done business with 1nMM.
Horwitz is believed to have started receiving funds as part of the Ponzi scheme in 2015, using them to purchase a $ 6 million home in Los Angeles’ Beverlywood neighborhood, while paying off previous investors.
Horwitz’s credits as an actor include low-budget features like Intruders and The devil below. Currently, his assets are frozen and the charges against him carry a maximum penalty of 20 years in jail.
According to the Times, Horwitz was released today on $ 1 million guaranteed bail, but his arraignment is scheduled for May 13.