A Los Angeles actor has been charged with operating a $227 million Ponzi scheme.
The FBI arrested a relatively unknown Los Angeles-based actor on Tuesday for allegedly operating a massive Ponzi scheme in which he duped investors by lying about the success of his film distribution business.
Zachary Horwitz, 34, who has appeared in small films as Zach Avery, is accused of defrauding investors of $227 million and pocketing the majority of the money, according to the Los Angeles Times, citing federal authorities.
Horwitz allegedly enticed investors by falsely claiming that his company, 1inMM Capital LLC, had film licensing agreements with Netflix, HBO, and other platforms, according to the newspaper.
Additionally, he told investors that his company distributed 52 films in South America, Africa, and Australia, according to court documents collected by the newspaper, and he gifted his investors bottles of expensive Johnny Walker Blue Label scotch.
The actor owes investors approximately $227 million after defaulting on 160 payments since 2019, according to the study, which cited the FBI.
He faces an accusation of wire fraud. Horwitz was released on a $1 million bond following his Tuesday arraignment.