An American actor was sentenced to twenty years in prison on Monday for orchestrating a fraud scheme that siphoned off $650 million, allowing him to live a lavish lifestyle with purchases of yachts, mansions, and luxury cars. Zachary Horwitz created fake contracts to deceive investors into believing they were with companies like Netflix and HBO, leading them to invest large sums of money which he spent on private jet trips, luxury cars, and an extravagant mansion in Los Angeles.
The Department of Justice stated that "prosecutors said Horwitz presented himself as a successful Hollywood star and as a figure in the industry, claiming he leveraged his relationships with online video platforms like Netflix and HBO to sell them distribution rights for foreign films." Horwitz, who acted in small horror films, told investors he was purchasing foreign distribution rights for American films and then selling them to video platforms.
The 35-year-old presented each victim with a document stating they would receive good profits after six or twelve months. He continued the scheme for seven years, using funds from new investors to pay off older ones. The entire scheme collapsed over time after $230 million went missing.
The actor admitted to the fraud in October and acknowledged he had never purchased any film rights or secured any distribution contracts. Prosecutors noted in a memo to the judge that the actor started his fraudulent operation by deceiving his college friends, as reported by the Los Angeles Times. They said, "The actor began by betraying the trust of friends who did not take precautions, unable to imagine that someone they had known for years could deceive them and their families and undermine their savings."
Horwitz was sentenced to 20 years in prison and was ordered by Judge Mark Scarsi to repay $230 million to his victims.
