According to court documents, the actor who was arrested earlier this year for defrauding investors of more than $650 million by falsely claiming deals with major media companies has agreed to plead guilty to one of the securities fraud crimes.
In April, Zachary Horowitz, 34, was Arrested After the Securities and Exchange Commission (SEC) accused him of running a Ponzi scheme that resulted in $277 million in fraudulently earned money owed to investors.
Horowitz allegedly lured potential investors by showing them fake emails that made it clear that his company, 1inMM, was in the process of acquiring distribution rights to major media companies.
The Securities and Exchange Commission stated that 1inMM has no affiliation with HBO or Netflix, Horowitz noted.
Documents filed in the US District Court for the Central District of California showed that Horowitz agreed to plead guilty and pay any criminal debts as ordered by the court. The plea agreement states that Horowitz will be required to “pay full compensation” to the victims of his alleged scheme.
Horowitz could potentially face up to 20 years in prison and millions of dollars in fines.
US District Judge Mark Scarci set the sentencing hearing for January 3.
“Mr. Horowitz has accepted responsibility for his actions, and yesterday’s appeal is an important step in the process of accepting responsibility,” the law firm representing Horowitz said when contacted by Hill.
Rolling Stone October 5, 2021
According to prosecutors, the Horowitz scheme began in 2014 and was still in effect in 2021, telling investors in March that a return on their investment was imminent.
“Instead of using the money to get the movies and arrange distribution deals, Horowitz operated 1inMM Capital as a Ponzi scheme, using the victims’ money to pay off previous investors and fund his own lifestyle, including the $6 million purchase of his Beverlywood condo,” said the US Attorney’s Office for the Central District. California in statment.
Horowitz defrauded five major groups of private investors, but these entities drew money from more than 250 sub-investors. By late 2019, 1inMM Capital had begun to default on all of its outstanding promissory notes, per a plea agreement, in which it admits Horowitz’s office added that he owed investors more than $230 million and that his plan had caused significant financial hardship to at least five investors.
As an actor, Horowitz, who also goes by Zach Avery, has appeared in science fiction films and small horror films. He appeared in the 2014 war film “Fury” starring Brad Pitt and Shia LaBeouf, in which he played an unacknowledged role as a doctor.