Actor who faked HBO and Netflix deals as part of Hollywood Ponzi scheme sentenced to 20 years in prison
Zachary Horwitz scammed investors out of $650 million and promised foreign licensing rights
After being found guilty of running a multi-million dollar Ponzi scheme, small-time actor Zachary Horwitz (also known as Zachary Avery) has been sentenced to a maximum of 20 years in prison for one count of securities fraud. As part of his sentencing, Horwitz must also pay $230.3 million in restitution to his victims, per the Associated Press.
In a press release, the Department of Justice said Horwitz “raised at least $650 million with bogus claims that investor money would be used to acquire licensing rights to films that HBO and Netflix purportedly had agreed to distribute abroad.”
“Defendant Zachary Horwitz portrayed himself as a Hollywood success story,” prosecutors argued in a sentencing memorandum. “He branded himself as an industry player, who, through his company… leveraged his relationships with online streaming platforms like HBO and Netflix to sell them foreign film distribution rights at a steady premium… But, as his victims came to learn, [Horwitz] was not a successful businessman or Hollywood insider. He just played one in real life.”
Over the course of five years, Horwitz used his “company” 1inMM Capital to raise millions of dollars, promising to acquire the distribution rights to foreign films which would then be licensed to profitable streaming services such as HBO and Netflix. The press release states much of the money he raised came from close personal friends. He used the money to pay back earlier investors as well as fund his extravagant lifestyle, including the purchase of a $6 million Beverlywood residence, luxury cars, and travel by private jet.
In order to maintain the Ponzi scheme, the Department of Justice says Horwitz fabricated film license agreements from production companies and distribution agreements with HBO and Netflix. He also sent investors fabricated emails and text messages using the identities of actual employees of HBO and Netflix.
Under his stage name Zach Avery, Horwitz has appeared in films such as The Devil Below, Curvature, and The White Crow. His most recent role was in the 2021 Olivia Munn action film The Gateway.