A Hollywood actor recently pleaded guilty for his role in losing hundreds of millions of dollars of investor funds in a Ponzi scheme.
Zachary Joseph Horwitz is a Los Angeles-based actor with 15 movie credits. He ran a Ponzi scheme that reeled in more than $650 million since 2014 and recently admitted to doing so in front of a federal judge in California.
Horwitz ran the scheme under the name 1inMM Capital, LLC. Horwitz claimed that his company had acquired licensing rights from top streaming companies like Netflix and HBO. These licensing deals reportedly gave 1inMM the right to distribute certain movies outside of the United States. Investors were convinced that they would receive double-digit returns between 25 and 40 percent considering the importance and size of the deal.
However, the licensing deals were nonexistent. According to the DOJ, 1inMM did not even intend to acquire movie rights to be distributed overseas.
Horwitz reportedly signed promissory notes with investors to raise money for the licensing deals. He showed investors the deals that he acquired with the streaming companies, but according to Horwitz in his very own guilty plea, the documents were falsified to entice investors.
Horwitz failed to use investor funds as intended by the promissory notes, which were supposed to give investors a specific amount of money within 6 to 12 months after signing the notes. Instead, Horwitz funneled the money to repay early investors and fund his lavish lifestyle. Horwitz reportedly purchased a $6 million home in a prestigious Los Angeles neighborhood before his fraud was exposed. Authorities estimate that more than $650 million was raised and Horwitz owes more than $230 million to investors to this day.
Ponzi Scheme Activity
Vernon Litigation Group continues to see heightened Ponzi scheme activity worldwide. We caution investors to complete proper due diligence into every investment opportunity before jumping in and committing money to a particular company or individual.
If you suffered losses in 1inMM Capital, please contact Vernon Litigation Group to determine your options and rights as an investor. Vernon Litigation Group represents investors across the country in a number of financial disputes, including securities litigation, Ponzi schemes, breach of fiduciary duty, investment fraud, and more.
Call us today at 239-319-4434 to speak with an experienced financial attorney.