Posted: Apr 8, 2021 03:53 GMT
You could face a sentence of up to 20 years in prison.
American actor Zachary Joseph Horwitz, better known as Zach Avery, was arrested on charges of committing a fraud of 227 million dollars through a pyramid scheme, the prosecutor’s office for the Central District of California reported on its website on Tuesday. .
According to the complaint, Horwitz, 34, invited to invest in his company, 1inMM Capital LLC, which, according to him, would use the funds to buy film rights for distribution abroad, particularly in the Latin American market. with the help of online platforms like Netflix and HBO. Private investment firms transferred about $ 227 million to 1inMM Capital LLC’s accounts.
However, he created a ‘Ponzi scheme’, using the victims’ money to pay previous investors. He also used part of these resources to finance his lifestyle, including the purchase of a luxurious residence in Los Angeles worth $ 6 million.
The Los Angeles actor known as Zach Avery faces wire-fraud charges in an alleged scheme to sell fake film-licensing rights https://t.co/u6Sjvb6grM
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Investors began to worry in 2019, after 1inMM Capital defaulted on the notes on several occasions. However, to convince them and prolong the scam plan, Horwitz provided excuses allegedly given by Netflix and HBO, forwarding false correspondence from the platforms to investors.
The actor is currently in custody and the next hearing in his case will take place on May 13. If convicted, he could face up to 20 years in prison.