The actor was reportedly claiming to sell the rights to the film to Netflix and HBO
Actor Zachary Horwitz has been arrested in connection with an alleged multimillion-dollar Ponzi scheme.
The US Securities and Exchange Commission (SEC) announced the news on Tuesday.
The SEC said it obtained an asset freeze and other emergency relief in an emergency enforcement action against Los Angeles actor Zachary Horwitz and his company, 1inMM (one in a million) Capital, LLC, in connection with an alleged Ponzi scheme raised. $ 690 million, ”the statement said.
Horwitz, 34, and 1 INM have been accused of telling investors that they were buying the rights to the film, allegedly to Netflix or resell them Hbo. The actor and company have no connection with the entertainment stage.
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In its complaint, the SEC accused Horwitz of showing “concocted agreements and emails” to investors between themselves and HBO and Netflix regarding the rights to the film and giving investors more than 35% returns, and for years. The return on the investments was paid by the amount of money. New investment, ” The SEC said.
In addition, Horwitz reportedly “rigged investor funds for his personal use” and incurred cash expenses, interior design, and trips to Las Vegas on his multimillion-dollar home.
“We allege that Horwitz promised extremely high returns and made the names and documents of two well-known entertainment companies admirable,” said Michelle Wayne Layne, director of the SEC’s Los Angeles Regional Office. “We obtained an asset freeze on an emergency basis to secure for the benefit of investors, which remains from funds raised by Horwitz.”
Horowitz and 1inMM were charged in the complaint for violating antefired provisions of federal securities laws that “seeks a permanent injunction, disagreement, prejudgment interest and civil penalties against Horwitz and 1inMM.”
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A hearing will be held on April 19 to “determine whether the freeze of property should apply for the duration of the trial.”
Horwitz’s attorney, Anthony Pacheco, did not immediately respond to Granthshala News’ request for comment.
Horwitz used the stage name of Zach Avery and listed 15 credit roles. IMDb Under the name, the upcoming film “Gateway,” starring Olivia Munn, features Bruce Dern and more, the Los Angeles Times reported.
Horwitz also sent investors bottles of Johnnie Walker Blue Label Scotch, along with a report containing a list of his company that the company was distributing worldwide, also outlets Reported.
Citing FBI information, the Times stated that Horwitz’s company defaulted on more than 160 payments due to its investors. One of them, Chicago’s JJMT Capital LLC, owes more than $ 160 million in principal and about $ 59 million in investment profits.
Horwitz allegedly owes investors about $ 227 million in principal alone.
The actor was arrested on Tuesday morning on a wire fraud charge at his home in the Beverwood neighborhood of LA. His home was also searched for evidence of securities and mail fraud, money laundering and other crimes.
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He Virtually appeared in court on Tuesday from a Los Angeles prison. The judge agreed to release him on a $ 1 million secured bond.