A Hollywood actor accused of devising a fraudulent financial package of $ 690 million has been arrested in Los Angeles and his assets seized, a California prosecutor and US financial policeman, the SEC, said.
Zachary Horwitz, 34, in the stage name of Zach Avery, is suspected of having for five years solicited investments in his fraudulent company.
It claimed to buy regional film distribution rights and then license them to major broadcasters like Netflix or HBO for distribution in Latin America, the California prosecutor’s office said in a statement.
But instead, he had organized his company, dubbed 1inMM Capital, into a Ponzi scheme, a fraudulent scheme where he used the money of some to pay others and finance his glitzy lifestyle, “including the purchase of a residence in Beverlywood for 6 million dollars, underlined the office of the prosecutor.
According to the SEC, this Ponzi scheme has raised up to $ 690 million from victims to whom Horwitz promised a 35% return on investment.
California justice says the scam involves $ 227 million in principal, which has not yet been reimbursed.
The actor, who recently appeared in thrillers and horror films such as “Beyond Appearances”, is charged with fraud and faces 20 years in prison.