Actor Sentenced to 20 Years in Prison Over $650M Ponzi Scheme

In late 2019, Horwitz started defaulting on outstanding notes issued by 1inMM, leaving investors with more than $234 million in unreturned principal, the SEC complaint stated.

Horwitz, the SEC complaint stated, “falsely blamed his default on refusals by HBO and Netflix to pay for distribution rights they had licensed from 1inMM and claimed he was engaged in promising negotiations with them to obtain past-due payments.”

Horwitz, who has appeared in films including The Devil Below, The White Crow and Farming, pleaded guilty in October to one count of securities fraud.

Hollywood ‘Success Story’

“Horwitz portrayed himself as a Hollywood success story,” prosecutors argued in a sentencing memorandum.

“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,” according to the government’s sentencing memorandum.

Instead of using the funds to acquire films and arrange distribution deals, Horwitz operated 1inMM Capital as a Ponzi scheme, using victims’ money to repay earlier investors and to fund his own lavish lifestyle, including the purchase of his $6 million Beverlywood residence, luxury cars and travel by private jet, according to the memorandum.

Horwitz defrauded five major groups of private investors and, throughout the scheme, Horwitz raised at least $650 million from more than 250 individuals who invested directly or indirectly in 1inMM Capital, according to the Justice Department.