IU alumnus Zachary Horwitz was arrested on April 6 and is accused of orchestrating over a $690 million Ponzi scheme violating federal SEC laws, according to court documents.
A Ponzi scheme is an operation promising high financial return or dividends through fraudulent investments, according to the FBI’s website. In Horwitz’s case, he was accused of using investors’ money for other purposes than what was intended.
Horwitz, 34, allegedly used money from investors to buy luxuries, such as a $6-million Beverlywood residence, as well as to repay money owed to previous investors, according to NBC News.
Horwitz created the company 1inMM Capital, LLC which was a limited liability company based in California, where the investments were made.
Horwitz allegedly fabricated information and claimed he had business relationships with Netflix and HBO when he did not, according to court documents. He told investors he was buying distribution rights to movies and selling them to these media companies for a large profit, according to court documents.
JJMT Capital, a company who invested in 1inMM, began to question Horwitz when he missed payments owed to them in 2019, according to Forbes. JJMT, according to Forbes, tipped off federal law enforcement leading to Horwitz’s arrest.
Four IU alumni created the company JJMT, which stands for each initial of the…