Actor Zachary Horwitz has been arrested in connection with an alleged multi-million dollar Ponzi scheme.
The news was announced Tuesday by the United States Securities and Exchange Commission (SEC).
The SEC said it secured an asset freeze and other emergency relief in emergency action against actor Zachary Horwitz and his company, 1inMM (one in a million) Capital, LLC, in part of an alleged Ponzi scheme that raised $ 690 million, ”the statement said.
Horwitz, 34, and 1inMM were accused of telling investors they were buying movie rights, allegedly to sell them back to Netflix or HBO. The actor and the company are said to have no connection with either of the entertainment platforms.
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In its complaint, the SEC accused Horwitz of showing investors “fabricated agreements and emails” between himself and HBO and Netflix regarding film rights and offering investors “returns in excess of 35%, and for many years he has paid supposed returns on previous investments using funds from new investments, ”the SEC said.
In addition, Horwitz is said to have “embezzled funds from investors for his personal use” and spent the money on his multi-million dollar home, expensive interior decorating and trips to Las Vegas.
“We claim that Horwitz promised extremely high returns and made them plausible by relying on the names of two well-known entertainment companies and fabricating documents,” said Michele Wein Layne, director of the SEC’s regional office in Los Angeles. “We have secured an emergency asset freeze to guarantee investors what is left of the money raised by Horwitz.”
Horowitz and 1inMM were charged with violating anti-fraud provisions of federal securities laws in the lawsuit, which also “seeks permanent injunction, restitution, pre-judgment interest and civil penalties against Horwitz and 1inMM” .
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A hearing will be held on April 19 “to determine whether the asset freeze should remain in effect for the duration of the dispute.”
Horwitz’s attorney, Anthony Pacheco, did not immediately respond to Fox News’ request for comment.
Horwitz used the stage name Zach Avery and has 15 credited roles listed on IMDb under the name, including the upcoming movie “Gateway,” starring Olivia Munn, Bruce Dern and more, the Los Angeles Times reported.
Horwitz also sent bottles of Johnny Walker Blue Label scotch to investors along with a report containing a list of films his company was supposed to distribute globally, the outlet also reported.
Citing information from the FBI, The Times said Horwitz’s company defaulted on more than 160 payments due to its investors. One of them, JJMT Capital LLC of Chicago, owed more than $ 160 million in principal and about $ 59 million in investment profits.
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Horwitz owes investors around $ 227 million in principal alone.
The actor was reportedly arrested for wire fraud Tuesday morning at his home in Los Angeles’ Beverlywood neighborhood.
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He appeared in court virtually Tuesday from a Los Angeles jail. The judge agreed to release him on a guaranteed bond of $ 1 million.
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