American actor Zach Avery was arrested by FBI agents in Los Angeles on Tuesday for allegedly masterminding a Ponzi scheme that defrauded investors of hundreds of millions of dollars.Avery, whose real name is Zachary J. Horwitz, told investors his company 1inMM Capital would buy film distribution rights and license them to Netflix and HBO but in fact had “no business relationship with either company”, according to the Securities and Exchange Commission.
In a sworn affidavit filed in Los Angeles federal court, FBI agent John Verrastro said Avery then used the funds for “personal benefit” and to make payments to previous investors “in the style of a classic Ponzi scheme.” He allegedly used money from the scheme to fund a lavish lifestyle, which authorities said included trips to Las Vegas, buying a house worth $6 million, and paying a celebrity interior designer.