Actor Zachary Horwitz Sentenced To Jail For Running A $650 Million Hollywood Ponzi Scheme
The American actor, who defrauded $650 million in a massive Hollywood Ponzi scheme to fund a lavish lifestyle of yachts, planes and cars, was sentenced to 20 years in prison on Monday.
New Delhi: Zachary Horvitz made up bogus contracts with HBO and Netflix to dupe investors into handing over large sums of money which he spent on private flights, high-end automobiles and a luxury Los Angeles residence with a wine cellar.
Zachary Horvitz, who played Zack Avery in a series of short-lived horror films, informed investors that he was buying distribution rights for American films overseas and then selling them to internet platforms.
The 35-year-old actor delivered each victim a memo promising a large return in six or twelve months. He kept the plan going for seven years, utilising new investors' money to pay off old ones.
In October, he admitted to the security scam and stated that he never purchased film rights or signed any distribution contracts.
According to the lawsuit filed by the Securities and Exchange Commission, Horvitz was accused of putting part of the money into his personal accounts and using the money to buy roughly $5.7 million worth of personal residences in cash, going to Las Vegas and flying on charter flights.
According to officials, more than 200 investors, including three of Horwitz's closest college buddies and their families, lost around $230 million.
Los Angeles Times wrote, "He began by betraying the trust of his own friends, people who lowered their guard because they could not possibly imagine that someone they had known for years would unflinchingly swindle them and their families out of their life savings."
Horwitz was sentenced to 20 years in prison and ordered by Judge Mark Scarsito to compensate his victims $230 million.
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