The Securities and Exchange Commission reported on April 6, 2021 that it had secured an asset freeze and other urgent relief in an emergency compliance action against Los Angeles-based actor Zachary Horwitz and his firm, 1inMM (one in a million) Capital, LLC, in connection with an alleged Ponzi scheme that raised over $690 million. Horwitz and 1inMM reportedly told investors that they were purchasing film rights with the intent of reselling them to Netflix and HBO; however, 1inMM had no commercial arrangement with either group.
Horwitz reportedly gave investors fabricated agreements and emails relating to the suspected HBO and Netflix sales. Horwitz guaranteed excessive returns and made them seem possible by using the titles of two well-known film firms and fabricating records. Horwitz misappropriated investment funds for personal use, including the purchasing of his multi-million dollar home, flights to Las Vegas, and payment to a millionaire interior designer. Horwitz falsely claimed to have a track record of successfully selling movie rights to Netflix and HBO when in fact neither Horwitz nor 1inMM had ever sold or done business with these two companies.
The SEC accused Horwitz and 1inMM of violating the antifraud provisions of the federal securities laws. The fact of the matter is that there is nothing unusual about this scam. Simply put, there was an abundance of people looking to invest money without engaging in adequate due diligence. As long as investors are willing to be naïve with their savings, there will always be someone out there hawking returns that seem to good to be true.