Movie Actor Zachary Horwitz Defrauds Investors in Ponzi Scheme

Posted on 04/09/2021


D-list actor Zachary Joseph Horwitz, known professionally as Zach Avery, is an American actor born on December 5, 1986. Avery’s screen debut was in the 2009 film G.E.D. In 2014, he appeared in an uncredited role as an SS medic in Fury.

Horwitz made millions while starring in relatively unknown, poorly-reviewed movies like Bitter Harvest and Last Moment of Clarity under the name Zach Avery. The U.S. Securities and Exchange Commission (SEC) obtained an asset freeze and other emergency relief in an emergency enforcement action against Los Angeles-based actor Zachary Horwitz and his company, 1inMM (one in a million) Capital, LLC in connection with an alleged Ponzi scheme that raised over US$ 690 million. Horwitz and 1inMM allegedly told investors that they were buying film rights, purportedly to resell them to Netflix and HBO; in fact, 1inMM actually had no business relationship with either company. The SEC acknowledges the assistance of the United States Attorney’s Office for the Central District of California and the Federal Bureau of Investigation.

The press release states, “According to the SEC’s complaint, Horwitz falsely claimed to have a track record of successfully selling movie rights to Netflix and HBO when, in fact, neither Horwitz nor 1inMM had ever sold any movie rights to, or done any business with, HBO or Netflix. Horwitz allegedly showed investors fabricated agreements and emails regarding the purported deals with HBO and Netflix. The complaint alleges that Horwitz and 1inMM promised investors returns in excess of 35%, and for many years paid supposed returns on earlier investments using funds from new investments. The complaint further alleges that Horwitz misappropriated investor funds for his personal use, including the purchase of his multi-million dollar home, trips to Las Vegas, and to pay a celebrity interior designer.”

According to the complaint, “Horwitz showed investors numerous fictitious documents to substantiate his claimed deals with HBO and Netflix, including numerous fake movie distribution agreements. Defendants promised returns in excess of 35% on 1inMM’s Promissory Notes.”

The complaint adds, “In late 2019, Horwitz began defaulting on outstanding notes issued by 1inMM, leaving investors with more than $234 million in unreturned principal. Horwitz falsely blamed his default on refusals by HBO and Netflix to pay for distribution rights they had licensed from 1inMM and claimed he was engaged in promising negotiations with them to obtain past-due payments.”

1inMM Capital, LLC (“1inMM”) is a California limited liability company formed in September 2013. Its principal place of business is Horwitz’s home in Los Angeles, California. Neither 1inMM nor its securities offerings are registered with the Commission.

Horwitz relied on personal relationships and word-of-mouth referrals to obtain investors. Horwitz typically solicited investors in person, over the telephone, and via email. Horwitz raised money from five principal investors, most of whom raised funds from friends, family, and other downstream investors for the purpose of investing in the Promissory Notes. Horwitz’s five principal investors raised funds from more than 200 downstream investors.

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