Horwitz’s business, though, is as much of an illusion as the special effects in his latest film, federal investigators said.
In fact, Horwitz has never had any affair with Netflix or HBO, according to the complaint filed by the US Securities and Exchange Commission this week, and instead creates documents and lies to investors while embezzling millions for it. Pay for his luxury lifestyle
On Tuesday, the SEC pinned the assets of Horwitz and his firm, 1inMM Capital, and accused him of violating anti-fraud rules. He was arrested by the FBI on Tuesday morning at his mansion in the Beverly neighborhood, according to the Los Angeles Times, and was charged with wire fraud.
“We accused Horwitz of promising extremely high returns and making them appear possible by calling out two well-known entertainment companies and creating documents,” said Michele Wein Layne, director of the Los Regional Office. The SEC’s Angels said in a press release.
Horwitz’s attorney, Anthony Pacheco, did not immediately respond to messages from The Washington Post early Wednesday morning. In a hearing from a video from a Los Angeles prison on Tuesday, Horwitz briefly told the judge that he understood the allegations he was facing, The Times reported.
As an actor, Horwitz appeared under the screen name Zach Avery and has been credited 15 units since 2009, according to IMDb.He has received small roles in a number of budget films, such as the part that was not certified as an SS physician in the film. Brad Pitt’s “Fury” in 2014 and a few bigger indie films, such as the 2017 sci-fi film Curvature, which Variety Pan as “a derivative metaphysical thriller”.
But if his on-screen career doesn’t begin, Horwitz appears to be making a big move in the movie distribution game. Since around 2014, the SEC said the actor had begun luring investors to 1inMM Capital, promising a fast return of 35 to 45 percent.
His offering is simple: An investor grants him money that he can use to purchase movie distribution rights, then Netflix or HBO pays him for film rights, and within a year or six months he can return the profit to. His supporters have
As Horwitz continues to achieve its goals and shares the expected documents from HBO and Netflix with his investors, his business looks solid, the researchers said. Some investors have turned millions. “I believe that if I was involved with HBO, my investment was safe,” one investor told the SEC.
There was actually no distribution rights, and Horwitz never sold any of the films to Netflix or HBO, federal investigators said. But he used the new money that came to pay old investors.Between 2014 and 2019 he raised more than $ 690 million.
In the meantime, Horwitz was living in a big way. Using the money from his investors, he rented more than $ 100,000 in discounted jets on a trip to Las Vegas, served up a subscription-based luxury watch, and bought a high-end car, the SEC said. The latter is his wonderful gem, a six-bedroom estate with a pool and furnished by designer furniture, according to Zillow’s listing shared by the Times.
However, by the end of 2019, the project began to collapse, researchers said.Horwitz was unable to pay investors, accused of scrambling to keep them satisfied through 2020, arguing that HBO was unable to pay for the deal. That was agreed and suggested that he was planning to sue the TV giants. He put his house on the market for $ 6.5 million.
As recently as last month the SEC said he told one investor he might want them to step in to help pay attorneys to recoup the money they expect from HBO.
But there has never been a deal with HBO or Netflix, federal researchers said.Since 2019, Horwitz has been accused of missing payments to 160 investors, including one in Chicago that owes $ 160 million in principal, the Times reported. In total, he owes investors about $ 227 million, excluding interest, according to the Times.
On Tuesday, prosecutors asked Horwitz to be detained, noting that millions of dollars had not been spent.
“The likelihood of the defendants having some of the money thrown out is quite high,” Assistant U.S. Attorney Alexander Schwab said in a video trial, The Times reported.
The judge chose to release him with a $ 1 million secured bond, according to the Times.The SEC is scheduled for a court hearing later this month to determine whether the agency can keep his assets. Or not