Hollywood actor, Zach Avery, arrested for alleged Ponzi scheme-U.S. lawmaker Zach Avery was arrested by FBI agents in Los Angeles on Tuesday on charges of masterminding a Ponzi scheme that hit investors of hundreds of millions of dollars, U.S. officials said.
Avery, whose real name is Zachary Horwitz, has told his investment company that 1inMM Capital will buy their movie distribution licenses and licenses on Netflix and HBO but in fact will not “have a business relationship with the company” “, according to the Securities and Exchange Commission.
Instead, the 34-year-old has worked for the company as part of the Ponzi scheme, using funds from new investors to pay for seniors, the U.S. Attorney’s Office for the Central District of California said in a statement.
The SEC said its assessment has raised more than $ 690 million. The Department of Justice said it started in 2015 and has not reimbursed $ 227 million of its victims.
Horwitz, described by the Los Angeles Times as a “little actor”, could not find success as an actor. It means that the expected 2020 film is “The Last Days of” the world “.
He alleges he used imaginary money to live a luxurious life, which officials said included traveling to Las Vegas, buying a home for $ 6 million, and paying a celebrity for a house.
Officials said the idea began in 2015, with Horwitz and 1inMM promising that those affected would return more than 35 percent.
To show his support, “Horwitz gave the entrepreneurs a fake license agreement, as well as a fake distribution agreement with Netflix and HBO, all of which had fake licenses or myths,” the U.S. Attorney’s Office said.
Horwitz was charged with wire fraud and could face up to 20 years in prison if convicted.