The SEC was able to obtain an asset freeze and emergency relief, but investors are now struggling to figure out whether they will receive any meaningful portion of their investments back.
Los Angeles-Based Actor Zachary Horwitz Was Alleged Mastermind Of The Ponzi Scheme
According to the SEC’s Complaint, Horwitz raised money from investors in the form of promissory notes issued by his company, 1inMM Capital. Regarding the promissory notes, the SEC alleged:
- Horwitz and 1inMM “represented that 1inMM would use the proceeds from each Promissory Note to finance transactions in which Defendants would: (1) acquire distribution rights in a specific movie; (2) license those rights to a specific media company; and (3) use the profits from these transactions to satisfy the note.”
- “Horwitz represented to investors that he and 1inMM would profit from these transactions by selling the movie rights to HBO or Netflix at a profit in excess of the profits paid to investors, and that Horwitz and 1inMM would retain this excess.”
The SEC’s Complaint can be found here.
The Complaint further alleges that Horwitz was able to raise hundreds of millions of dollars through personal relationships and word-of-mouth referrals. The Complaint alleges that there were ultimately hundreds of investors.
Silver Law Group Represents Ponzi Scheme Victims
A hallmark of every Ponzi scheme, the SEC alleged that “Horwitz used investor funds to pay purported returns on previously issued notes, which induced investors to purchase additional notes and to raise funds for downstream investors.” Unfortunately, the Complaint goes on to allege that Horwitz used investor funds “for lavish personal spending, including . . . extravagant trips to Las Vegas, flights on chartered jets, payments for high-end automobiles, a subscription service for luxury watches, and the . . . purchase of his multi-million dollar home.”
Zachary Horwitz Also Arrested on Federal Criminal Complaint
In addition to the SEC’s action, the United States Department of Justice issued a press release detailing that Horwitz was arrested in connection with federal charges of wire fraud in connection with this scheme.
Silver Law Group Specializes in Representing Victims of Investment Fraud
Horwitz’s scheme began to unravel when 1inMM Capital began defaulting on notes over the past few years, but there is now concern as to whether investors will even receive their principle back.
Silver Law Group is experienced in representing investors who suffered losses in Ponzi schemes like the one Horwitz and 1inMM allegedly ran. Silver Law Group has already begun investigating this alleged fraud and continues to do so in light of the civil and criminal allegations that have come to light.
There may be a path to recovery of your financial losses. If you or someone you know invested in any of Horwitz’s or 1inMM’s offerings, please contact Silver Law Group for a confidential consultation at (800) 975-4345 or e-mail ssilver@silverlaw.com for a confidential consultation. Most cases are handled on a contingency fee basis, meaning that you won’t owe us money until we recover for you. Contact us today to find out how we can help.