Actor Zach Avery was arrested on Tuesday (6) in Los Angeles (United States), accused of running a pyramid scheme in Hollywood that resulted in a loss of $ 227 million, the equivalent of more than $ 1, 2 billion by the quotation of the day.
According to the U.S. Department of Justice, the artist, whose real name is Zachary Joseph Horwitz, has forged licensing deals with HBO and Netflix, thinking of attracting investors to his film distributor 1inMM Capital LLC, founded in 2013.
He claimed that his company had rights to distribute films in English from the alleged partners to Latin America, initially, and later claimed to have started to serve New Zealand and Australia as well. In this way, Avery deceived the victims with the opportunity to profit by distributing dozens of titles annually.
Whoever invested in the Ponzi scheme created by the actor had the promise of receiving returns of up to 40% per year. As the money did not appear, he showed investors e-mails exchanged with executives from partner companies, justifying the delays. But the talks never happened, according to FBI agent John Verrastro.
Up to 20 years in prison
Arrested on charges of electronic fraud, Avery faces trial on May 13 and faces up to 20 years in prison if convicted. As there is a suspicion that he still has part of the amount saved and could escape, the justice wants to keep him detained until the trial. Despite this, a judge set his bail at $ 1 million, which has not yet been approved.
The actor, who has participated in films such as Curvature, Last Moment of Clarity and Iron Hearts, among others, has failed to fulfill more than 160 payments since 2019. He used part of the money raised from the coup to buy a mansion in Beverlywood ) in 2018, according to Verrastro, which is now on sale for $ 6.5 million.