Hollywood Actor Arrested For Alleged Multi-million-dollar Ponzi Scheme
Chand Sahkeel Published April 07, 2021 | 12:59 PM
American actor Zach Avery was arrested by FBI agents in Los Angeles on Tuesday for allegedly masterminding a Ponzi scheme that defrauded investors of hundreds of millions of dollars, US authorities said
Los Angeles (UrduPoint / Pakistan Point News - 7th Apr, 2021 ) :American actor Zach Avery was arrested by FBI agents in Los Angeles on Tuesday for allegedly masterminding a Ponzi scheme that defrauded investors of hundreds of millions of Dollars, US authorities said.
Avery, whose real name is Zachary Horwitz, told investors his company 1inMM Capital would buy film distribution rights and license them to Netflix and HBO but in fact had "no business relationship with either company", according to the Securities and Exchange Commission.
Instead, the 34-year-old operated the company as a Ponzi scheme, using money from new investors to pay older ones, the US Attorney's Office for the Central District of California said in a statement.
The SEC said his scheme had raised more than $690 million. The Department of Justice said it began in 2015 and that $227 million put in by victims was yet to be repaid.
Horwitz, described by the Los Angeles Times as "a small-time actor", failed to find success as an actor. He starred in the critically panned 2020 film "Last Moment of Clarity".
He allegedly used money from the scheme to fund a lavish lifestyle, which authorities said included trips to Las Vegas, buying a house worth $6 million, and paying a celebrity interior designer.
Authorities said the scheme had started in 2015, and that Horwitz and 1inMM promised victims returns of more than 35 percent.
To establish his legitimacy, "Horwitz provided investors with fake license agreements, as well as fake distribution agreements with Netflix and HBO, all of which contained forged or fictional signatures," the US Attorney's Office said.
Horwitz has been charged with wire fraud, and could face up to 20 years in prison if convicted.
Related Topics
Recent Stories
Pakistan's total liquid foreign reserves reach $ 13.42 billion
Aeon & Trisl signifies back-to-back successes by securing the No. 1 Award at the ..
Attaullah Tarar’s success notification from NA-127 challenged
PSX witnesses positive trend today
PM Shehbaz meets CJP Isa to address IHC judges’ concerns
Pakistan vows to bring to justice perpetrators, abettors of Bisham terrorist att ..
May 9 riots: SC allows conditionally to military courts to deliver reserved verd ..
Interior Minister arrives in Peshawar after Shangla suicide attack
OPPO Reno 11 F 5G: Setting New Records as Pakistan's Most Beloved Smartphone Lin ..
PCB dismisses FICA's claims of unpaid dues in PSL
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 March 2024
Today Gold Rate in Pakistan 28 March 2024
More Stories From Showbiz
-
Asad Siddiqui, Zara Noor Abbas welcome their first baby
21 hours ago -
First heroine of Pakistani cinema Asha Posley remembered
3 days ago -
Taapsee Pannu ties knot with Mathias Boe
3 days ago -
Aiza Awan loves to perform emotional characters in TV dramas
6 days ago -
Bollwyood Actor Vivian Dsena embraces Islam
7 days ago -
Daniel Bruhl on playing Karl Lagerfeld: 'He walked like a matador'
15 days ago
-
Sonam Bajwa expresses wish to visit Pakistan
16 days ago -
How does Bushra Ansari react if someone ignore her calls?
16 days ago -
Aya Nakamura faces 'racist' backlash over rumoured Olympics show
17 days ago -
Rumours of Aya Nakamura Olympics performance spark far-right backlash
17 days ago -
Czech Republic Krystyna Pyszkova wins Miss World contest
17 days ago -
Dance Junction lights up Karachi Arts Council with spectacular performances
19 days ago