Hollywood actor Zachary Horwitz arrested for running Ponzi scheme

Zachary Horwitz, a 34-year-old aspiring Hollywood actor, was arrested and charged with wire fraud on Tuesday by FBI agents on suspicion of running a £502m ($690m) Ponzi scheme tricking film investors with fake Netflix deals to fund a lavish lifestyle.

Mr. Horwitz, whose stage name is Zach Avery, allegedly raised funds from investors for film licensing deals with Netflix and HBO that did not exist. If convicted he could be jailed for 20 years. The criminal complaint was filed by prosecutors and the US Securities and Exchange Commission (SEC) on Monday.  HSBC moved the Ponzi scheme millions despite the warning.

It accuses Mr. Horwitz of using investor funds for lavish personal spending including extravagant trips to Las Vegas, flights on chartered jets, payments for high-end cars, and the purchase of a $5.7m mansion in Los Angeles.

“We allege that Horwitz promised extremely high returns and made them seem plausible by invoking two well-known entertainment companies and fabricating documents “ Michele Wein Layne, a senior SEC official said.

Mr. Horwitz appeared in Fury – a 2014 American war film starring Brad Pitt and has mostly appeared in low-budget films with mediocre ratings.

Lucia’s Grace- an Italian comedy released in 2019 doesn’t seem like a lucrative prospect for investors.

From, he promised investors that his company, 1 in MM Capital LLC, would use their funds to buy the rights to distribute films in Latin America, Africa, and New Zealand. He promised backers returns of at least 35 per cent within a year. But in reality 1 in MM had no business relationship with either Netflix or HBO” according to prosecutors.

Mr. Horwitz allegedly showed investors fabricated agreements and emails regarding the purported deals with HBO and Netflix.

The criminal complaint alleges Mr. Hortwitz deposited or transferred at least some investor funds to his personal bank accounts.  Some of the payments listed in the complaint $691, 800 to a celebrity interior decorator, $165. 408 for luxury cars $137, 702 for chartered jet flights, and $54, 600 for a watch subscription service.

At a court appearance on Tuesday, a judge set Mr. Horwitz’s bond or bail at $1m.