Actor Zachary J. Horwitz, known as Zach Avery, was arrested in Los Angeles on Tuesday.
According to a Press release from the US Attorney’s Office., the 34-year-old actor was arrested by the FBI after allegedly running a multi-million dollar Hollywood Ponzi scheme. ET has contacted the Avery representative for comment.
The prosecution’s press release states that the criminal complaint against Avery alleges that the victims put $ 227 million (not yet reimbursed) “into a scheme based on false claims that their money would be used to acquire license rights to movies that HBO and Netflix had. agreed to distribute abroad, particularly in Latin America. “
The criminal complaint filed Monday charged Avery with wire fraud, a crime that carries a legal maximum penalty of 20 years in prison.
According to the affidavit cited in the US Attorney’s Office press release, Over the course of about five years, Avery asked investors to invest in his company, 1inMM Capital LLC, “which, according to him, I would use the funds to purchase regional film distribution rights. ” According to the press release, the plan allegedly began in 2015 and would allegedly falsify correspondence between Netflix and HBO using the names of the companies’ employees. While Avery claimed it had “strong relationships” with streaming services, representatives for Netflix and HBO denied that their companies worked with Avery or their company.
A United States trial judge set his bail at $ 1 million and he will not be released from custody until the bail is approved. An arraignment on this matter was scheduled for May 13. The investigation is ongoing.