LOS ANGELES (CBSLA) – A Los Angeles actor is set to plead guilty Monday in federal court to operating an elaborate Ponzi scheme that allegedly bilked investors out of a staggering $650 million.
Zachary Joseph Horwitz, who used the name Zach Avery in film credits, allegedly bilked investors who thought their money would finance distribution rights for movies that would run on HBO and Netflix, according to the U.S. Attorney’s Office.
The 34-year-old Horwitz, who lives in the Beverlywood area, has agreed to plead guilty to one federal count of securities fraud, which carries a sentence of up to 20 years behind bars, court papers show.
The U.S. Securities and Exchange Commission also sued Horwitz and his firm, 1inMM Capital LLC, in civil court over the alleged scam, which involved the sales of film-licensing rights, primarily in Latin American markets.
Horwitz, 34, operated 1inMM Capital as a Ponzi scheme, using victims’ money to repay earlier investors and to fund an “opulent” lifestyle, including the purchase of a $6 million Beverlywood home, federal prosecutors allege.
The scheme allegedly began in October 2014, when investment firms began entering into a series of six- or 12-month promissory notes with 1inMM Capital based on Horwitz’s statements.
The funds supplied under each note were supposed to provide money for 1inMM Capital to acquire the rights to a specific film, according to papers filed in Los Angeles federal court.
Prosecutors allege that to persuade…