Hollywood actor Zachary Horwitz attends a screening of "Trespassers" in 2018 at the FrightFest horror film festival in London. In actuality, prosecutors argued that Avery used some of the money to repay investors who donated funds earlier, while supporting his lifestyle that included buying a $6 million home. He is accused of defrauding investors of at least $227 million and fabricating his companys business relationship with HBO and Netflix. He faces up to 20 years in prison if convicted . In 2014, he appeared in an uncredited role as an SS medic in Fury. They thought this was their golden goose. Zachary J. Horwitz, an actor who goes by the stage name Zach Avery, has been formally sentenced to 20 years in federal prison for a massive Ponzi scheme prosecutors say raised at least $650. You will be notified in advance of any changes in rate or terms. He was arrested this week and charged with fraud. Horwitz sent JJMT what he said was an agreement between HBO and 1inMM Capital to distribute the film in Africa and Latin America for three years. Prosecutors feared he had "money squirreled away" and wanted Avery held in custody until his trial, as reported by the Los Angeles Times. filed April 5, 2021) Horwitz, 34, admitted in court papers that he . Customer Service. They would take a cut of the 30% to 40% interest rates that Horwitz promised to pay. Matt Grobar. He previously covered state and national politics, including the 2020 presidential campaign. Anyone can read what you share. Not Hollywood, not L.A., not the country, At 19, he won a local school board seat. They sold the notes to their family, friends and professional contacts. Its a bad sign when even the prayers in this movie are crappy, observed one reviewer, who contributed to the films 15 percent critic rating on Rotten Tomatoes. Avery was arrested back in April in Los Angeles, and he later pleaded guilty to a federal charge of securities fraud in October. LOS ANGELES: Actor Zach Avery has been arrested in connection with a massive Hollywood Ponzi scheme. JJMT declined to comment. The SEC complaint stated neither Avery nor his company had ever done business with HBO and Netflix. The search warrant allowed agents to open any phone or tablet that required facial ID or a thumbprint by holding the device in front of his face or against his thumb. They also searched the home for evidence of securities and mail fraud, money laundering and other crimes, according to the FBI affidavit. The SEC alleges that Horwitz used new investor funds to pay principal and interest to previous investors in a classic Ponzi scheme. .\.bAGbR,\PKwO'~qNvJx>|(? An arraignment has been set for May 13 to discuss the matter, the U.S. Attorney's Office said. An actor credited as "Zach Avery" in movies . Zachary J. Horwitz, a small-time actor, was arrested Tuesday in Los Angeles on a federal charge that he ran a massive Ponzi scheme that defrauded investors out of $227 million by touting fictitious film licensing deals with HBO, Netflix and other platforms. He pled guilty to securities fraud and was sentenced to twenty years in prison on February 14, 2022. He also claimed to have expanded his partnership with Netflix and HBO to distribute films to Australia and New Zealand. Horwitz allegedly told investors that he had longstanding relationships with executives at HBO and Netflix. In 2013, Avery founded 1inMM Capital LLC and used that company to promise investors a massive return on films where they would purchase distribution rights and license those movies to big market streaming services such as Netflix and HBO. Avery is accused of fabricated licensing deals with Netflix, HBO, as well as other platforms, in order to secure funding for his film distribution company, 1inMM Capital LLC, according to the FBI. More from Deadline. Actor Zachary Horwitz Arrested For Film Rights Ponzi Scheme. Zachary Joseph Horwitz known professionally as Zach Avery, is an American convicted felon and former actor. But the purported signature of the president of operations for HBO Latin American Holdings was forged, according to the FBI. Zachary Horwitz, the former actor allegedly behind a massive Hollywood Ponzi scheme, duped his old college friends and their families out of tens of millions of dollars, according to . Zachary J. Horwitz ("Horwitz"), age 34, is a resident of Los Angeles, California, and the managing member of 1inMM. All investors needed to do was help buy the rights to distribute it and a number of other films in Latin America, Africa and New Zealand. Horwitz bought a $5.7 million home in the Los Angeles neighborhood of Beverlywood, and spent $124,000 on trips to Las Vegas and $2.5 million for a celebrity interior designer, securities regulators say. In a sworn statement filed in Los Angeles federal court, FBI agent John Verrastro laid out a brazen scheme by Horwitz to persuade investors to pour huge sums of money into his film distribution company, 1inMM Capital LLC. But at some point, there wasnt enough money flowing in to maintain the illusion even with the help of the Johnny Walker Blue Label scotch Mr. Horwitz sent to principals, according to F.B.I. We are delighted that you'd like to resume your subscription. You may cancel your subscription at anytime by calling Horwitz has been acting professionally for more than a decade but has struggled to find success. Avery founded the Los Angeles-based 1inMM Capital LLC in 2013, claiming to distribute English films to the Latin American market through partnerships with HBO and Netflix, the FBI said. Mr. Horwitz was in jail on Wednesday, Mr. Mrozek said. BLOOMINGTON, IN - SEPTEMBER 23: General view of Sample Gates on the campus of Indiana University in [+] Bloomington, Indiana. These 3 Tech Giants Are Next. All told, Horwitz owes investors about $227 million in principal alone, according to the FBI. #xZ>bGSrwA[Fp,V,'K0IJ?V,Xx+#7 ZW6Fd2>W&*iZV:6fY{iM,Ja95-.yWb5'{)_ On Tuesday, actor Zachary Horwitz (known professionally as Zach Avery) was arrested on charges of wire fraud, as reported by the Los Angeles Times. Mr. Horwitz was also inappropriately using investor funds on a $5.7 million home and $700,000 in fees for a celebrity interior designer, according to the S.E.C. Here are 22 essential L.A. spots for every tourist, Column: We cant afford another writers strike. Its largest investor, JJMT Capital, LLC, of Chicago, is owed more than $160 million in principal and about $59 million in investment profits, Verrastro said. Zachary Horwitz . As payments were due, Avery fabricated email correspondence with Netflix and HBO executives to justify delays. Two years ago, Zachary Horwitz seemed to be living the Hollywood dream. At first, Mr. Horwitz was able to follow through on his promises. The way that money can be made in the movie distribution world is to say, Ill give you $100,000 for Latin America rights, for example, Mr. Mrozek said, adding, I go to HBO or whomever and say, Give me $200,000 to show the movie.. It was that relationship that he said essentially guaranteed them returns of 35 percent or more within six months or a year. In truth, he had no such relationships, and 1inMM had no distribution deals. The low-budget horror movie star who terrorized investors with a $650 million Ponzi scheme based on fake deals with HBO and Netflix was sentenced to 20 years in prison on Monday. Cal. Opportunities to discuss your particular case are welcomed. ". So who is Avery's wife, who has been with him through all of this? ` 2Z . Age discrimination, How to have the best Sunday in L.A., according to Rainn Wilson, Schiff reports major cash advantage over Porter and Lee in Senate race, The Ultimate L.A. Bookshelf: 110 essential Los Angeles books, This exclusive island town might be Californias biggest violator of affordable housing law, Despite storms, many Californians are still coping with dry wells and awaiting fixes, Column: Lefties never liked Dianne Feinstein. As covered by People, Avery was arrested on Apr. agent John Verrastro, who outlined the scheme in a complaint. Investors Can Make Gains As Companies Break Up. (if applicable) for The Wall Street Journal. F%K&VmvP3* In 2018, Avery starred in Hell Is Where the Home Is (also known as Trespassers), as well as appeared in a small role in the Rudolf Nureyev biopic The White Crow. On Tuesday, federal agents in Los Angeles arrested Zachary Horwitz, the 34-year-old small-time actor behind 1inMM, and accused him of running a Ponzi scheme that securities regulators said totaled $690 million. I believed that if HBO was involved, my investment was safe, one investor told the S.E.C. Once those fell into place, the investors would get returns of at least 35 percent. 1166 0 obj <> endobj In 2021, he was arrested on charges of defrauding investors of $227 million through a Ponzi scheme. !1$ Actor Zachary J. Horwitz, best known under his stage name Zach Avery, was arrested Tuesday in Los Angeles in connection with a massive Hollywood Ponzi scheme, which federal authorities allege. [9], Avery was arrested on charges of wire fraud (18 U.S.C. Sign up for PEOPLE's free True Crime newsletter for breaking crime news, ongoing trial coverage and details of intriguing unsolved cases. Since December 2019, he has defaulted on more than 160 payments and owes investors $227 million in principal alone, the affidavit states. (Release No. Once the actor was arrested, authorities froze his assets in an attempt to recover money for the defrauded investors, per theSEC. Zachary J. Horwitz, et al. The movie-licenses and the deals with HBO and Netflix were bogus, federal prosecutors said, adding that by far the largest source of investor funds that came into the Ponzi scheme was raised by JJMT. As mentioned in a February 2019 cover story for Swagger, the actor moved from Chicago to Los Angeles "with nothing more than his dog, a few suitcases, and a big dream" and the support of Mallory, who was his girlfriend at the time. Investors were promised a return of up to 40 percent within a year, Verrastro said. Avery, whose legal name is Zachary J. Horwitz, collected hundreds of millions in loans he falsely told investors would be used to secure film distribution rights. "We allege that Horwitz promised extremely high returns and made them seem plausible by invoking the names of two well-known entertainment companies and fabricating documents," Michele Wein Layne, Director of the SEC's Los Angeles Regional Office, said in a statement at the time. (= HVms8_cHzLZrlermRpJanXs06OL~GFOK9q0!^P^Rv~gmy9x ^YY*"iL^pYh@M;n'[{HBX@AG& kM,AMIM(&w#Np/xEbH`L#J^iPQj`Abi1`i1` Anthony Pacheco, Horwitzs lawyer, did not respond to requests for comment. JPM Court documents do not list all of the films investors thought they had helped buy rights to, but the complaint features an image from 1inMMs library; the 1989 Jean-Claude Van Damme movie The Kickboxer and the 2013 romantic comedy The Spectacular Now are included. Why are HBO and Netflix not doing this on their own, Ferrari asked? Since December 2019, 1inMM has defaulted on more than 160 payments, according to court documents. Make America Healthy Again - Falling Life Expectancy Is Alarming, Silicon Valley Bank Collapse And Credit Suisse Rescue Are A Boon For Private Equity, Saudi To The Fore As OPEC Cuts Production. But she agreed to release Horwitz on a $1-million secured bond. Wunderlin, deAltris and Schwinzger founded JJMT Capital in an 1,100 square-foot Chicago apartment and started raising money for the deals. BEVERLYWOOD, LOS ANGELES: Zachary Horwitz, who is also known by his stage name Zach Avery, was arrested on Monday, April 5, on charges of running a Ponzi scheme that led to at least 200 investors losing $227M. All four men struck up a close relationship. The notes carried maturities of between 6 and 12 months and each was tied to a specific movie like Blood Quantum and La Melodie. 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