The Securities and Exchange Commission has charged Los Angeles-based actor Zachary Horwitz and his company – 1inMM (one in a million) Capital, LLC — in connection with an alleged Ponzi scheme that raised over $690 million from investors.
As detailed in the SEC Complaint:
4. Horwitz, a Los Angeles based actor, and his company 1inMM conducted an offering fraud and Ponzi scheme in violation of the federal securities laws. Since March 2014, until at least December 2019, Defendants raised over $690 million from investors by selling promissory notes issued by 1inMM, using fabricated agreements and fake emails with prominent third party companies with whom Defendants had no actual business relationship. Horwitz then misappropriated and misused the offering proceeds, including for the purchase of a luxury home he has recently listed for sale.
5. Defendants represented that the purpose of the offering was to finance 1inMM’s acquisition and licensing of distribution rights in specific movies, primarily from Latin America, to major media companies, mostly Netflix or Home Box Office (“HBO”). To persuade investors to purchase the promissory notes, Horwitz made materially false and misleading statements, including that he had experience acquiring and licensing distribution rights in movies to HBO and Netflix, and that he had, in the past, used the profits from those transactions to repay investors in 1inMM’s promissory notes. Horwitz described himself to investors in company documents as bringing “a wealth of knowledge, reputation, and experience[.]” Defendants also claimed that HBO, Netflix, and other media corporations were 1inMM’s “Strategic Partners”.
6. Horwitz showed investors numerous fictitious documents to substantiate his claimed deals with HBO and Netflix, including numerous fake movie distribution agreements.
7. Defendants promised returns in excess of 35% on 1inMM’s Promissory Notes.
8. In reality, 1inMM and Horwitz had no relationship with either HBO or Netflix and never licensed any movie rights to either company.”
According to the SEC Complaint, Zachary Horwitz used investor funds for many personal expenses, including buying a $5.7 million home, trips to Vegas totaling $100,000, paying $700,000 to an interior designer, and paying $1.8 million to American Express.
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