By Aaron Miller-
Zachary Horwitz, a small-time actor who admitted to operating a multimillion-dollar Ponzi scheme, was sentenced to 20 years in federal prison on Monday for one count of securities fraud. As part of his sentencing, Horwitz must also pay $230.3 million in restitution to his victims.
The Department of Justice said in a news release that Horowitz “raised at least $650 million with bogus claims that investor money would be used to acquire licensing rights to films that HBO and Netflix purportedly had agreed to distribute abroad.”
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In October, Horowitz pleaded guilty to a federal securities fraud charge and admitted to running the Ponzi scheme. He received a 240 month sentence, according to Monday’s release, and must pay more than $230 million in restitution.
In a press release, the Department of Justice said Horwitz “raised at least $650 million with bogus claims that investor money would be used to acquire licensing rights to films that HBO and Netflix purportedly had agreed to distribute abroad.”
“Defendant Zachary Horwitz portrayed himself as a Hollywood success story,” prosecutors argued in a sentencing memorandum. “He branded himself as an industry player, who, through his company… leveraged his relationships with online streaming platforms like HBO and Netflix to sell them foreign film distribution rights at a steady premium… But, as his victims came to learn, [Horwitz] was not a successful businessman or Hollywood insider. He just played one in real life.”
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Over the course of five years, Horwitz used his “company” in MM Capital to raise millions of dollars, promising to acquire the distribution rights to foreign films which would then be licensed to profitable streaming services such as HBO and Netflix. The press release states much of the money he raised came from close personal friends. He used the money to pay back earlier investors as well as fund his extravagant lifestyle, including the purchase of a $6 million Beverlywood residence, luxury cars, and travel by private jet.
.Zachary Horwitz, who had roles in some low budget films under the name Zach Avery, was sentenced Monday for swindling hundreds of millions of dollars out of investors to finance a billionaire’s lifestyle of yachts, private jets and sports cars. Horwitz raised at least $650 million by telling investors he was selling foreign distribution rights to streaming platforms, prosecutors said. “Horwitz portrayed himself as a Hollywood success story…He branded himself as an industry player, who… leveraged his relationships with online streaming platforms like HBO and Netflix to sell them foreign film distribution rights at a steady premium.
Horwitz fraudulently put some of the money in his personal accounts and used the money for purchasing a personal residence for approximately $5.7 million in cash, taking trips to Las Vegas, and flying on chartered jets, according to a complaint filed by the Securities and Exchange Commission.
Horwitz — better known by his stage name “Zach Avery” — spent the past decade acting in around a dozen mostly low-budget films, including “Trespassers” and “The White Crow,” according to his IMDb profile. He also had a minor uncredited role in “Fury,” which starred Brad Pitt. York Times trial highlights the ‘worst possible scenario’ for journalists.
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