Zachary Avery arrested by FBI after defrauding investors of $227 million

Horowitz had been persuading investors to fund his film distribution companies by touting fake licensing deals with a number of streaming platforms and networks.

APRIL 9, 2021 02:16

Money (photo credit: INGIMAGE / ASAP) — Money

(photo credit: INGIMAGE / ASAP)

Actor Zachary Horowitz, who appeared in minor films under the stage name Zachary Avery, has been arrested on federal charges for running a Ponzi scheme that defrauded investors out of $227 million.

Horowitz was arrested by FBI agents after it was found that he was tricking investors with fake network deals from HBO, Netflix, etc. in order to defraud them out of millions.

Horowitz had been persuading investors to fund his film distribution companies by touting fake licensing deals with a number of streaming platforms and networks.

According to an LA Times report, Horowitz had even drafted false annual reports with a collection of over 50 films the company was currently distributing in Africa, Australia, New Zealand and South America, citing FBI agent John Verrastro.

The collection consisted of older movies Horowitz claimed to be distributing throughout these locations.

It was found that instead of investing the money into his film company, Horowitz was using it to fund a lavish and luxurious lifestyle.

One of his purchases included a $6.5 million Beverlywood estate that is now listed for sale on the market.

He was arrested on wire fraud charges on Tuesday, according to the report. It is estimated he owes investors $227 million in principal investments alone.

The FBI notes that Horowitz could have money "squirreled away," and that he will be detained until trial as a flight risk.

It was found Horowitz never had any correspondence with either HBO or Netflix.