A Los Angeles actor Zachary Horwitz scammed investors in a $650 million Ponzi scheme was sentenced to 20 years in federal prison, according Justice Department.
US District Judge Mark C. Scarsi on Monday orders Horwitz to pay more than $230.3 million in restitution to (investors.
Prosecutors said Horwitz would use loans from one group of investors to repay the others, while taking millions of dollars to pay for his luxury lifestyle.
Some of his splurges include $700,000 for a celebrity interior designer to remodel his $5.7 million home in Beverlywood, Calif.
Horwitz also used some of the funds to finance low-budget films including “Gateway” and “The White Crow,” according to court documents.
From March 2014 to December 2019, Horowitz raised millions of dollars from investors and promised them for licensing rights.
He said to investors that he will use this money to buy licensing rights to hundreds of movies that would be resold to HBO, Netflix and other platforms.
According to the criminal complaint. Horwitz showed investors various documents that he claimed deals with HBO and Netflix, including numerous fake movie distribution agreements.