A Los Angeles male was arrested Tuesday on suspicion of operating a $227 million Ponzi scheme that solicited buyers for phony film licensing discounts, federal prosecutors reported.
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Zachary Joseph Horwitz, 34, was billed with wire fraud, which carries a statutory utmost penalty of 20 a long time in prison, according to a statement from the U.S. Attorney’s Workplace. It wasn’t straight away recognised if Horwitz has an legal professional.
Prosecutors said Horwitz instructed buyers that their revenue would be applied to purchase movie distribution legal rights that would then be licensed to platforms these as HBO and Netflix.
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But rather of utilizing the funds to make distribution deals, Horwitz allegedly operated his agency 1inMM Funds as a Ponzi scheme, using victims’ cash to repay previously buyers and to fund his possess way of living, which includes the acquire of a $6 million household, prosecutors reported.
Representatives for Netflix and HBO have denied that their organizations engaged in any business enterprise with Horwitz, according to an affidavit.
Horwitz is scheduled to be arraigned Could 13.