Actor Zach Avery Arrested for Allegedly Running Multi-Million Dollar Hollywood Movie Ponzi Scheme | WHAT REALLY HAPPENED

Actor Zach Avery Arrested for Allegedly Running Multi-Million Dollar Hollywood Movie Ponzi Scheme

Actor Zachary J. Horwitz, best known under his stage name Zach Avery, was arrested Tuesday in Los Angeles in connection with a massive Hollywood Ponzi scheme, which federal authorities allege defrauded investors out of more than $227 million.

Avery is accused of fabricating licensing deals with Netflix, HBO, as well as other platforms, in order to secure funding for his film distribution company, 1inMM Capital LLC, according to the FBI.

Avery's lawyer and publicist did not immediately respond to PEOPLe's request for comment.

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."

Avery founded the Los Angeles-based 1inMM Capital LLC in 2013, claiming to distribute English films to the Latin American market through partnerships with HBO and Netflix, the FBI said.

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