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Actor accused of using Ponzi scheme money to buy $ 6 million Los Angeles house and pay off credit card debt

In 2018, Zachary Joseph Horwitz, who acts as Zach Avery, purchased a $ 6 million home in Los Angeles.

He was arrested this week and charged with fraud.

The home, which is marked for sale with a pending offer, is listed on Zillow as a six-bedroom, eight-bathroom, 7,670 square foot “traditional estate reinvented by famous designer Lonni Paul.”

The house has a swimming pool and an adjoining spa, a cabin with fireplace, a chef’s kitchen, a “private master suite with personalized cupboards and a spa-like master bathroom. “and a” 1000-bottle refrigerated wine cellar, “according to the Zillow List.

Photos on Zillow show a living room that opens onto a covered outdoor patio, a grand piano under a stunning chandelier and massive abstract artwork, a home theater with 10 plush recliners and a sectional, and a bathroom. home gym worthy of a luxury hotel.

According to his IMDb profile, Horwitz has 15 actor credits to his name. Four of them are for shorts; about half of them see him as an anonymous extra.

Yet after Horwitz bought the house, he “wired two payments of $ 70,000 to Lonni Paul Design for a down payment / sofa / side table,” according to a criminal complaint filed Monday by the Securities and Exchange. Commission in the United States District Court for Central California.

And a week before Horwitz bought his gorgeous Beverlywood estate, he paid off nearly $ 300,000 in credit card debt, according to the complaint.

Horwitz quickly paid American Express in three installments: first, he put $ 70,328.05 on the card, then $ 57,351.25 and, finally, $ 164,241.06, according to the criminal complaint.

The money, prosecutors said, belonged to investment groups. Horwitz reportedly told them their money would multiply safely because he would buy the distribution rights to movies, which he said he would “license to major online platforms like Netflix or HBO,” according to the criminal complaint.

Horwitz, 34, is accused of defrauding five groups of investors, when most of the funds he acquired came from a private company. He would send bogus annual reports to investors in his fraudulent company, 1inMM Capital, with a graphic of a non-existent film library, prosecutors say.

Some of the money Horwitz made in what prosecutors said was a $ 227 million scheme “was used to reimburse investors for past investments … in accordance with a Ponzi scheme,” according to the ‘affidavit. “In some cases, investors have been reimbursed with their own money,” the complaint says.

He must have started paying them something, prosecutors said, because in 2019 investors started complaining.

When Horwitz was unable to pay investor dividends, he processed the emails to appear to come from HBO and Netflix executives explaining the delay in funds, according to the criminal complaint. Netflix and HBO have denied engaging in any business with Horwitz or 1inMM Capital, according to the affidavit.

Netflix sent a cease-and-desist letter in February demanding that Horwitz “stop making false statements about its dealings with Netflix,” prosecutors said. But he reportedly continued to forge emails to make it look like they were from Netflix, telling investors why they weren’t reimbursed.

Horwitz was taken into custody by the FBI on Tuesday for wire fraud, the Central California prosecutor’s office said in a statement.

Federal authorities have called for the complaint to be sealed, arguing that because Horwitz has started selling his house and “not all of the proceeds from his fraud scheme have been found,” he poses a risk of flight.

Court documents show that a judge ordered the case to be opened on Tuesday.

Even though the house is for sale, Horwitz still occupies it, according to the criminal complaint. And Horwitz hasn’t implemented mail forwarding, he says.

He is due in court on April 19.

His lawyer, Anthony Pacheco, did not respond to repeated requests for comment on Wednesday and Thursday.

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