SEC obtains emergency asset freeze on a $690 million Ponzi Scheme

The Securities and Exchange Commission has obtained an asset freeze and other emergency relief in an enforcement action against Los Angeles-based actor Zachary Horwitz. The SEC has connected him and his company, 1inMM (one in a million) Capital, LLC to with an alleged Ponzi scheme that raised over $690 million.

The US watchdog claims that Horwitz and 1inMM mislead investors that they were buying film rights, to resell them to Netflix and HBO. However, the SEC found that 1inMM actually had no business relationship with either company.

The SEC’s complaint alleges that Horwitz falsely claimed to have a successful track record of selling movie rights to Netflix and HBO. The Commission found that neither him or his company had ever sold any movie rights to, or done any business with, HBO or Netflix.

SEC penalty, fine

Horwitz and 1inMM allegedly promised investors more than 35% in returns and for years paid presumed returns on earlier investments with money from new investments.

The SEC claims that Horwitz misappropriated investor funds for his personal use. He purchased a multi-million-dollar home, trips to Las Vegas, and to paid a celebrity interior designer.

Michele Wein Layne, Director of the SEC’s Los Angeles Regional Office, commented:

We allege that Horwitz promised extremely high returns and made them seem plausible by invoking the names of two well-known entertainment companies and fabricating documents. We obtained an asset freeze on an emergency basis to secure for the benefit of investors what remains of the money raised by Horwitz.

The US regulator charged Horwitz and 1inMM with violating the antifraud provisions of the federal securities laws. The complaint asked for immediate asset freeze other emergency relief granted by the Court. The SEC also seeks a permanent injunction, disgorgement, prejudgment interest, and civil penalties against Horwitz and 1inMM. A hearing is set for 19 April 2021 to determine whether the asset freeze should be kept during the proceedings.

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