Zachary Horwitz, 34, in the name of Zack Avery’s platform, is suspected of soliciting investments in his fraudulent company for five years.
It said it would buy regional film distribution rights and then license major broadcasters such as Netflix or HBO to distribute them in Latin America, the California Attorney’s Office said in a statement.
But instead, he organized his company, known as 1inMM Capital, into a Ponzi scheme, a fraudulent scheme where he used some of the money to pay others and finance his livelihood, “underlining the lawyer’s office, including the purchase of a $ 6 million apartment in Beverlywood.
According to SEC, the Ponzi scheme has raised up to $ 690 million from victims, with Horwitz promising 35% return on investment.
California Justice says $ 227 million in original involvement in the scam has not yet been repaid.
The actor, who recently appeared in thrillers and horror films such as “Appearances Beyond”, is facing up to 20 years in prison on fraud charges.