According to reports, Zachary Horwitz, an actor whose filmography includes several low-budget horror and science fiction films, is set to plead guilty for running a multi-million dollar ponzi scheme.
Horwitz, 34, admitted to authorities that he defrauded investors out of $650 million for fictitious movie deals with HBO and Netflix. Despite giving a lot of the money back in order to entice investors to dish out more cash, he used the money to fund a "lavish lifestyle." Horwitz acknowledged that he has failed to repay $231 million.
Per the Los Angeles Times:
"The agreement calls for Horwitz to plead guilty to one count of securities fraud at a hearing on Oct. 4. Prosecutors indicated in court records they will ask U.S. District Judge Mark C. Scarsi to impose a hefty sentence in light of the huge sum Horwitz swindled. He faces up to 20 years in prison.
Horwitz admitted in the plea agreement that for seven years he falsely represented to investors that his film company, 1inMM Capital, LLC, was buying foreign distribution rights to movies, then licensing them to Netflix, HBO or other platforms to stream online in Latin America, Australia, Europe and Africa."
As part of the deal, if Horwitz decides to plead guilty to the single fraud charge, the other five counts of securities fraud, six counts of wire fraud and two counts of aggravated identity theft will be dismissed.
Source: latimes.com
