The scammer convinced colleagues, friends and family to give him money to invest in deals with HBO and Netflix that turned out to be fake
Zachary Horwitz , or commonly known as Zach Avery , was punished to 20 years in jail after being found guilty for organizing a multi-million dollar Ponzi scheme of more than 650 million USD in which he illegally using money from people involved in the entertainment business, friends and other relatives
1. Ponzi Scheme Definition
The Ponzi scheme is a fraudulent investment operation that involves paying interest to investors on their own invested money or the money of new investors. This scam consists of a process in which the profits obtained by the first investors are generated thanks to the money contributed by themselves or by other new investors who are deceived by the promises of obtaining, in some cases, great profits. The system works only if the number of new victims grows.
2. Who is Zach Avery
Zach Avery, famed for his roles in cheap horror films, managed to convert his investors that the cash was supposed for deals, that clad to be phoney, with HBO and Netflix.
The thirty five y.o actor was charged in federal court in center of L.A once pleading guilty within the case last Oct. The judge decided him to pay 230 million USD in restitution.
I passed over,” said Avery to District Court Judge Mark Scarsi before sentencing, describing himself a “broken, imperfect person.”
A woman sitting with Horwitz’s family broke down in loud sobs when she was handed the prison sentence, The Rolling Stone .In distinction to 1 of the actor’s victims who testified throughout the hearing and appeared happy with the long sentence however cask his head in disgust once the judges foresaid Horwitz, who has 2 young child, might wait till March fourteen to show himself in.
Zach Avery’s attorneys had asked for leniency during back-and-forth debate that touched on claims that Horwitz suffers a bipolar disorder and also problems with addiction.
The convicted con man, who had roles in the scary movies The Devil Belw (2021) and You’re Not Alone (2020) under the name Zach Avery , started his “massive” Ponzi scheme in 2014, prosecutors said, falsely saying to clients that it was so well connected in the entertainment industry that it could acquire movie titles for overseas distribution and then license the properties to HBO, Netflix and other major broadcasters in deals offering eye-popping returns of 25 to 40 percent. .
In reality, Avery used that money to live a lavish style in Hollywood, stuffed with yacht and private jet rentals, do a lot parties in Vegas, luxury cars, and also the purchase of a 5.7 million USD mansion with a swimming pool, fitness facility in home, and personal screening room outside of Beverly Hills, authorities said.
4. Evidence and Victims
According to an FBI evidence, Zach Avery spent more than 6.9 million USD on AE credit card bills, more than 345,000USD on chartered jet and yacht, and also more than 604,000USD on Mercedes-Benz and Audi cars
3 victims conveyed the court in person on Monday, including a screenwriter Robert Henny, who said he lost around 1.8 million USD in this Ponzi scheme he described as “devastating” and a “never-ending nightmare.”
According to his plea acceptance with procurator, Zach Avery tricked an Illinois investor to sends $1.4 million in December 2018 for a fraudulent deal that purported to obtain certain international issue rights to Active Measures, an authentic documentary exploring the so-called intrigue between the Donald Trump campaign and Russia.
5. Falsified license
On the report of documents filed in the case, Zach provided his victims with copies of falsified licensing and issue agreements with shaped or bogus signatures. When his company, 1inMM Capital , began to default in 2019, Horwitz “doubled down on his lies,” blaming streaming platforms and producing spoofed emails with the addresses “@hbo.com” and “@netflix.com” to “calm down.” ” to his investors and make them think their money was safe, prosecutors said.
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