In 2022, Zachary Horwitz, an aspiring actor turned scammer, was sentenced to 20 years in prison for orchestrating a massive Hollywood Ponzi scheme based on fake low-budget film deals. His story is one of ambition, deception, and financial ruin.
From Psychology Major to Hollywood Actor
Born in Berkeley, California, Horwitz spent his early years in Tampa, Florida, and Fort Wayne, Indiana. He pursued a degree in psychology at Indiana University before briefly running a health-food restaurant in Chicago called FUL. His ambitions led him to Los Angeles, where he adopted the stage name Zach Avery and sought to break into the film industry.
While he managed to secure small roles in films like Fury, Curvature, Farming, and The White Crow, Horwitz eventually shifted his focus to film production.
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The Birth of 1inMM Capital
In 2013, Horwitz co-founded 1inMM (One in a Million) Capital with a fellow producer – who denied any involvement in the subsequent fraud. The company claimed to specialize in acquiring the rights to low-budget films, which would then be sold to major platforms like HBO and Netflix in Latin American and international markets.
How the Scam Worked
To fund these supposed deals, Horwitz began selling promissory notes to investors, offering an enticing 15% return in just six months.
He backed these notes with what he claimed were already signed contracts with streaming giants. However, the contracts were entirely forged, and none of the deals ever happened.
Rather than investing the funds, Horwitz used the money to pay off earlier investors. He also splashed out on a lavish lifestyle. This included a Hollywood mansion complete with a pool, gym, and a 1,000-bottle wine cellar. In essence, Horwitz was running a Ponzi scheme.
Early Success and Sudden Collapse
Horwitz’s scam began small, borrowing $37,000 in 2014 from friends who had gone into investment banking. His prompt repayment of these early loans gained their trust, leading them to reinvest and even bring in more friends and family.
However, in 2019, Horwitz suddenly stopped making payments, blaming delays from HBO and Netflix. By December 2020, a group of investors filed lawsuits and confronted Netflix, only to find out that the documents they had were fraudulent. This led to the involvement of the FBI and the Securities and Exchange Commission.
The Fall of Zachary Horwitz
In October 2021, Horwitz admitted to fraud, and by February 2022, he was sentenced to 20 years in prison. Authorities estimated he had defrauded investors out of $680 million.
By the time the FBI raided his accounts, he had virtually nothing left—just a few thousand dollars spread across various accounts.
Lessons from the Fraud
Horwitz, now 35, has been ordered to repay more than $230 million to investors.
However, the total losses are estimated to exceed $235 million, with some early profits possibly recoverable. His case serves as a stark reminder of the dangers of investment fraud and the importance of thorough due diligence.
While Horwitz’s Hollywood dreams crumbled, the financial wreckage he left behind continues to impact many who trusted him with their money.
