Actor Zach Avery was arrested in connection with a major Hollywood Ponzi scheme.
According to the Los Angeles Times, Avery, whose real name is Zachary J Horwitz, was arrested Tuesday and federal investigators said he defrauded investors of more than $ 227 million.
Horwitz appeared in minor roles in such films as “Fury,” “Curvature,” “Agriculture,” and “The White Crow.”
He is accused of signing licensing agreements with Netflix, HBO and other platforms, in order to secure funds for his movie distributor, 1inMM Capital LLC, according to the Federal Bureau of Investigation (FBI).
In a criminal complaint filed Monday in United States District Court, FBI agent John Verrastro alleged that Horwitz misled investors in significant amounts by persuading them to invest in 1inMM Capital.
According to Verrastro, Horwitz sent investors bottles of Johnny Walker Blue Label whiskey with the company’s 2015 annual report highlighting a library of 52 films that his company allegedly distributed in Africa, Australia, New Zealand and South America.
It attracted investors with the promise of a return of up to 40% in one year, Verrastro said.
Horwitz used some of the investors ‘money to buy a six-bedroom home in Los Angeles’ upscale Beverlywood district for $ 6.5 million three years ago.
When the payments are due, Avery fabricated email correspondence with Netflix and HBO executives to justify the delays.
FBI agents arrested Horwitz Tuesday morning for fraud at his Beverlywood home.
They also searched the home for evidence of title and mail fraud, money laundering and other crimes, according to FBI testimony.
According to the Times, Horwitz was released today on a $ 1 million guaranteed bond.
(This story has not been edited by the Devdiscourse team and is automatically generated from a distributed feed.)
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