The US Securities and Exchange Commission (SEC) has obtained an asset freeze against Los Angeles-based actor Zachary Horwitz and his company, 1inMM (one in a million) Capital, LLC in an emergency enforcement action. The authority has taken this step due to the actor’s involvement in a Ponzi scheme that raised over $690 million. Horwitz and 1inMM defrauded investors by telling them that they were buying film rights to resell them to Netflix and HBO when, in reality, 1inMM had no business relationship with these companies.
Horwitz used fraudulent agreements and emails to convince the investors of 1inMM’s deals with HBO and Netflix. He promised investors returns of more than 35%. For several years, he even paid supposed returns on earlier investments using the amount he had collected from new investments. The actor also redirected these fraudulently obtained investor funds for his personal use, such as buying a multi-million-dollar home, or vacationing in Las Vegas.
In its complaint, the SEC has charged Horwitz and 1inMM with breach of the antifraud provisions of the federal securities laws. In addition to the asset freeze and other relief, the SEC has also sought other actions, including civil penalties, against Horwitz and 1inMM.