{"id":42445,"date":"2021-04-06T19:22:27","date_gmt":"2021-04-07T02:22:27","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=42445"},"modified":"2021-04-06T19:22:27","modified_gmt":"2021-04-07T02:22:27","slug":"man-allegedly-used-ponzi-scheme-to-scam-investors-of-227-million-by-falsely-claiming-to-license-latin-american-films-to-netflix-and-hbo","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=42445","title":{"rendered":"Man Allegedly Used Ponzi Scheme to Scam Investors of $227 Million by Falsely Claiming to License Latin American Films to Netflix and HBO"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0LOS ANGELES\u00a0<\/span><\/strong><\/p>\n

A Beverlywood man was arrested Tuesday on a federal criminal complaint alleging that victims put $227 million \u2013 investment principal that has yet to be repaid, according to officials.<\/span><\/p>\n

\"\"<\/a>The scheme is allegedly based on false claims their money would be used to acquire licensing rights to films that HBO and Netflix had agreed to distribute abroad, particularly in Latin America<\/span><\/p>\n

Zachary Joseph Horwitz, 34, who has used the screen name \u201cZach Avery,\u201d was taken into custody by special agents with the FBI. <\/span><\/p>\n

The criminal complaint was unsealed during Horwitz\u2019s initial appearance in U.S. District Court.<\/span><\/p>\n

\"\"<\/a><\/p>\n

The criminal complaint filed Monday charges Horwitz with wire fraud, a crime that carries a statutory maximum penalty of 20 years in prison.<\/span><\/p>\n

According to the affidavit in support of the complaint, over the course of about five years, Horwitz solicited investors to invest in his company \u2013 1inMM Capital LLC.<\/span><\/p>\n

Horwitz claimed he would use the funds to purchase regional distribution rights to films and then license the rights to online platforms such as Netflix and HBO, officials allege.<\/span><\/p>\n

\"\"<\/a>Horwitz provided promotional materials to investors that claimed 1inMM Capital offered \u201csafe\u201d investments because \u201cwe receive confirmation from each of our outputs indicating their desire to acquire the rights to any title we purchase PRIOR to us releasing funds for the film,\u201d according to the affidavit.<\/span><\/p>\n

However, instead of using the funds to acquire films and forge distribution deals, Horwitz allegedly operated 1inMM Capital as a Ponzi scheme, using victims\u2019 money to repay earlier investors and to fund his own lifestyle, including the purchase of his $6 million Beverlywood residence.<\/span><\/p>\n

The scheme allegedly began in 2015, when investment firms began entering into a series of 6-month or 12-month promissory notes with 1inMM Capital based on Horwitz\u2019s statements. <\/span><\/p>\n

The funds supplied under each note were supposed to provide money for 1inMM Capital to acquire the rights to a specific film. <\/span><\/p>\n

To convince investors he was legitimate, the affidavit states, 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. Despite Horwitz\u2019s claim of \u201csolid relationships\u201d with online platforms, representatives for Netflix and HBO have denied that their companies engaged in any business with Horwitz or 1inMM Capital, the affidavit states.<\/span><\/p>\n

Investors started to complain after 1inMM Capital began defaulting on notes at various times in 2019, the affidavit states. <\/span><\/p>\n

To prolong the scheme in the wake of mounting defaults, Horwitz provided excuses that were purportedly given by Netflix and HBO, forwarding to investors spoofed correspondence with Netflix and HBO in which Horwitz again fraudulently used the identities of Netflix or HBO employees.<\/span><\/p>\n

According to the affidavit, private investment firms have transferred approximately $227 million to 1inMM Capital pursuant to promissory notes since late 2018. <\/span><\/p>\n

Horwitz, through 1inMM Capital, allegedly has defaulted on all these underlying notes.<\/span><\/p>\n

Horwitz is presumed innocent unless proven guilty.<\/span><\/p>\n

The FBI is investigating this matter. The U.S. Securities and Exchange Commission provided substantial assistance.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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