$690 Million Netflix Ponzi Scheme Head Now In Hot Water For Lying About Selling Movies to the Streaming Platform
(Photo : Screenshot From Pexels Official Website) $690 Million Netflix Ponzi Scheme Head Now In Hot Water For Lying About Selling Movies to the Streaming Platform

Not everyone could be just like the modern 007 Daniel Craig who easily could profit up to $100 million with a deal made with Netflix for two of the Knives Out sequels. However, someone tried to pass like they did.

Zachary Horwitz Ponzi Scheme

According to both the SEC and the FBI, this is exactly what Zachary Horwitz has allegedly done. The act was part of his Ponzi scheme in which the SEC now claims to have raised over a whopping $690 million by tricking people into believing that their investment was legitimate. The investors were led to believe that he was doing serious business with the biggest streaming services in the world. This then led them to believe in the profitability of his company despite actually just being a Ponzi scheme when the FBI and SEC looked into it.

LA Times reportedly describes Zach Avery as a small time actor but Horowitz had apparently told investors that his very own company called the 1inMM or one in a million was actually involved in buying certain film rights then reselling them to both Netflix and HBO. However, representatives coming from both companies revealed to the FBI that they have no particular business relationship with 1nMM.

FBI Looks Into the Case

The FBI also says that both the licensing as well as distribution agreements that were shown to investors were apparently fake and even complete with forged signatures. He had also claimed that their investments were totally safe. According to the given affidavit that was filed by the FBI, he even told investors that they have received confirmation and each one of their outputs indicating their official desire to acquire the rights to any given title that they purchase PRIOR to releasing the said funds for the film.

According to the story by Engadget, with those evidential forged documents, they then allege that Horwitz started receiving funds as early as 2015 then used the victim's money in order to pay up earlier investors and use it to buy himself a massive $6 million house. The SEC even notes that the charges towards Horwitz and 1nMM include their violation of antifraud laws while also freezing his given assets.

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Horowitz's Arrest

The FBI officially announced Horwitz's arrest while citing the massive $227 million investors that investors have transferred to the company some time since the late 2018. The amount then allegedly defaulted on and ended up charging him with wire fraud. Wire fraud carries a massive maximum penalty of up to 20 years directly in jail.

LA Times also reported that he was then released on just a $1 million secured bond. Some truth of the matter, once everything is all over, Horowitz might still have a story that Netflix could potentially be interested in buying after it would release the Anna Delvey / Anna Sorokin documentary.

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Written by Urian Buenconsejo

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