Zachary Horwitz, an actor who admitted to operating a multimillion-dollar Ponzi scheme, was sentenced to 20 years in federal prison this week, according to the Department of Justice.
According to Monday’s news release, Horwitz, 35, received a 240-month prison sentence and must pay $230 million in restitution.
Prosecutors alleged that between 2014 and 2019, the actor obtained hundreds of millions of dollars in loans for his film company by claiming that the money would be used to purchase distribution rights to movies that would be used to stream on platforms like HBO and Netflix.
Prosecutors said that Horwitz, however, instead used the money to repay previous investors in what they said is a classic Ponzi scheme. He also purchased luxury items and a $6 million home, they said.
“To date, Horwitz, through 1inMM Capital, remains in default to investors on a total outstanding principal of approximately $230 million and his scheme has caused substantial financial hardship to dozens of investors,” the Justice Department said Monday.
“Defendant Zachary Horwitz portrayed himself as a Hollywood success story,” the U.S. Attorney’s Office for the Central District of California said in a statement. “He branded himself as an industry player, who, through his company ... leveraged his relationships with online streaming platforms like HBO and Netflix to sell them foreign film distribution rights at a steady premium.”
However, they said that he wasn’t really “a successful businessman or Hollywood insider” and “just played one in real life.”
Previously, the U.S. Securities and Exchange Commission said in April 2021 that they obtained an asset freeze against Horwitz and his company in connection to the scheme. Their complaint said neither the actor nor his firm ever did business with HBO or Netflix.