A Los Angeles actor has been ordered to serve more than 20 years behind bars over charges related to an elaborate $650 million Ponzi scheme.

35-year-old actor Zachary Joseph Horwitz convinced investors to buy into his bogus company, 1inMM Capital. As part of the scheme, Horwitz took investor money claiming that he would use it to buy distribution rights for different films. Horwitz explained that the film's rights would then be licensed out to popular streaming services including HBO and Netflix.

To get investors to buy into his scheme, officials explain that Horwitz used fraudulent official-looking documents that appeared to come from HBO and Netflix. His elaborate scheme began in 2014 and ran all the way through 2019 when his operation began to crumble.

Officials explain that Horwitz largely used investor money to fund his lavish lifestyle. According to the Justice Department, the actor's company never acquired any film rights and never had any distribution agreements in place to license out these rights. Instead, Horwitz used the money to pay off earlier investors. After paying them off, he would then tap into the funds to support his lavish lifestyle which included a $6 million home and a number of luxury vehicles. Court documents detail Horwitz also used investor money to fund his travels on a private jet to lavish vacation destinations. Investor funds were also used to further his professional career according to documents. Horwitz used some of the money to finance low-budget films including “The White Crow” and “Gateway,” both of which he appeared in.

Horwitz’s scheme began to fall apart in 2019 when 1inMM Capital began to default on outstanding promissory notes. The notes guaranteed investor payments of 25 - 45 percent of their investments. When investors didn’t get their returns, they began to complain and voice their concerns. To help tide them over, officials detail that Horwitz sent out fake text messages and emails that appeared to come from HBO and Netflix employees.

In a court affidavit, prosecuting authorities explained, “Defendant Zachary Horwitz portrayed himself as a Hollywood success story…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 … But, as his victims came to learn, [Horwitz] was not a successful businessman or Hollywood insider. He just played one in real life.”

Horwitz was convicted in May 2021 on five counts of securities fraud, six counts of wire fraud, and two counts of aggravated identity theft. In addition to serving 20 years behind bars, Horwitz has also been ordered to pay back $230 million in restitution.