Los Angeles, USA
Zach Avery, an actor who has appeared in films such as “Fury”, “The White Crow” or “Under the Same Skin”, was arrested in Los Angeles after discovering his involvement in a Ponzi scheme that defrauded $ 227 million to various investors through fictitious deals with HBO, Netflix and other platforms.
The 34-year-old performer was accused of sending fake emails posing as HBO and Netflix directors around non-existent film distribution agreements. In a statement on his own account in federal court in Los Angeles, FBI agent John Verrastro revealed Avery’s plan, which was intended to persuade investors to invest huge sums of money in his distribution company, 1inMM Capital LLC.
Horwitz sent investors an annual report highlighting a catalog of 52 films that his company has distributed in Africa, Australia, New Zealand and South America, according to Verrastro’s statement. This list included titles such as the 2012 horror film The Lords of Salem or Kickboxer, a 1989 production with Jean-Claude Van Damme.
Avery misled investors into “strategic partnerships” with HBO, Netflix and other licensing platforms for distribution rights abroad and promised them a profit of up to 40% in one year.
However, according to the FBI, the defendant did not have any agreement and diverted a large part of the money for his personal gain. He used some of the funds to buy a house in Beverlywood in 2018, which is now selling for $ 6.5 million. The actor was accused of wire fraud and could be sentenced to 20 years in prison.
Since December 2019, Avery has been unable to pay for over 160 payments to its investors. Its largest investor, JJMT Capital, LLC, has debts of more than $ 160 million in equity and about $ 59 million in profits. In total, Avery owes investors about $ 227 million.
U.S. Attorney Alexander Schwab has urged Judge Jean P. Rosenbluth, who is handling the case, to keep Avery in custody until his flight risk trial. “The chances of the defendant hiding some of this money are quite high,” Schwab said. Despite this concern, the magistrate set his bail at one million dollars, but he will remain in police custody until the bail is approved. For now, the artist will have to wait until May 13, the date on which his notification will take place.