Actor Pleads Guilty In $650 Million Ponzi Scheme Involving Fake Netflix, HBO Deals

LOS ANGELES (AP) — An aspiring actor pleaded responsible Monday to working a large Ponzi scheme that raised not less than $650 million from traders in phony Hollywood movie licensing offers.

Zachary Joseph Horwitz, 34, of Los Angeles, entered a plea to a federal cost of securities fraud and will withstand 20 years in jail when he’s sentenced in January, based on a press release from the U.S. legal professional’s workplace.

Prosecutors alleged that from 2014 to 2019, Horwitz secured tons of of tens of millions of {dollars} in loans for his movie firm, 1inMM Capital LLC, by falsely claiming the cash can be used to purchase distribution rights to motion pictures that may then be licensed for distribution to streaming platforms similar to Netflix and HBO.

Instead, Horwitz used a number of the cash to repay earlier traders in a basic Ponzi scheme and to assist a life-style that included shopping for a $6 million dwelling, prosecutors mentioned.

More than 200 traders, together with three of Horwitz’s closest school pals and their members of the family, misplaced about $230 million, authorities mentioned. Horwitz had appeared in plenty of motion pictures, normally in small roles, below the title Zach Avery.

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