An actor in small-budget flicks was arrested Tuesday on suspicion of operating a $227 million Ponzi plan that solicited buyers for phony movie licensing offers, federal prosecutors stated.
Zachary Joseph Horwitz, whose monitor title is Zach Avery, was charged with wire fraud, which carries a statutory greatest penalty of 20 many years in jail, according to a statement from the U.S. Attorney’s Office. It wasn’t straight away known if Horwitz has an lawyer.
Prosecutors claimed Horwitz, 34, instructed investors that their money would be utilised to obtain movie distribution rights that would then be certified to platforms these kinds of as HBO and Netflix.
But in its place of utilizing the funds to make distribution discounts, Horwitz allegedly operated his business 1inMM Funds as a Ponzi plan, working with victims’ revenue to repay previously investors and to fund his individual life-style, including the order of a $6 million home, prosecutors mentioned.
Reps for Netflix and HBO have denied that their businesses engaged in any enterprise with Horwitz, according to an affidavit.
Horwitz is scheduled to be arraigned Might 13.
Horwitz’s credits as an actor incorporate small-price range features these kinds of as “Trespassers,” “The Devil Below” and “Last Moment of Clarity.”
The latter featured Horwitz (Avery) as a drifter in Paris who thinks an actress that he saw in a motion picture could be his deceased girlfriend. He “makes a fairly good guide,” one particular reviewer wrote. The movie also starred Samara Weaving and Brian Cox.
Here’s a trailer for that film, which was reportedly introduced digitally in Could 2020: