Actor Zachary Horwitz, better known by the stage name Zach Avery, was arrested Tuesday night and charged with running a multi-million dollar Ponzi scheme. Horwitz has been accused of defrauding investors out of $227 million after fabricating emails from Netflix and HBO executives about fake film distribution deals to hold off demands for payments from his investors.
FBI Agent John Verrastro claims that Horwitz swindled investors by encouraging them to invest in his alleged film distribution company called 1inMM Capital LLC. The FBI also claims the Ponzi scheme included a report that claimed 1inMM Capital LLC was distubiting over 52 films in South America, Africa, New Zealand, and Australia.
In actuality, Horwitz did not have any legitimate licensing deals and instead used the investments for personal expenditures, including his Beverlywood estate, which is currently listed on Zillow for $6.5 million.
In a hearing in Downtown Los Angeles, U.S. Magistrate Jean P. Rosenbluth agreed to release Horwitz on a $1 million secured bond while he awaits trial.
Header image courtesy of People.com.