Streaming Lies: Inside the $690 Million Netflix® and HBO® Scam
Zachary Horwitz wasn't a Hollywood star — but he played the role convincingly. Known by his stage name, Zach Avery, the little-known actor made headlines when his shocking $690 million Ponzi scheme targeting investors captivated the world. How did Horwitz so convincingly spin a web of deceit that defrauded even his close friends?
From Bit-Part Actor to Big-Time Scammer
Horwitz arrived in Los Angeles with dreams of acting and a knack for reinvention. With his production company, 1inMM Productions — which stands for "one in a million" — he started luring investors in October 2014 by claiming to sell international distribution rights for movies to streaming giants like Netflix® and HBO®. His pitch came with fabricated agreements and emails that looked official — except none of it was real.
While Horwitz starred in a few low-budget films under the stage name Zach Avery, his real production was his lifestyle. Living in a $6 million mansion, traveling by private jet and enjoying courtside Lakers® seats, he portrayed the image of success.
One former colleague described him as "the worst actor I've ever worked with," adding that sharing a scene with Horwitz resembled "interacting with a banana," as reported by The New Yorker.
The Allure of Hollywood and Streaming
Hollywood's reputation as a goldmine for dreamers helped Horwitz prey on investor greed. Investors were dazzled by the opportunity to cash in on the booming streaming industry. Contracts and repayment schedules appeared legitimate, and initial returns kept the scheme afloat.
But beneath the surface, Horwitz used new investments to pay earlier investors. His "profits" funded private jets, luxury cars and even a celebrity decorator for his sprawling home.
"Every Hollywood scammer has a persona," LA investigative journalist Allison Hope Weiner told The Guardian. "Horwitz understood the importance of image. He looked the part, people could see him flying around, doing well and that's how it works."
The Collapse of a House of Cards
The scheme began unraveling in 2019 when Horwitz could no longer meet repayment demands. The FBI discovered forged documents, fake emails and falsified Netflix and HBO contracts. By 2021, Horwitz had defrauded over 250 investors, many of them close friends and their family members, out of millions of dollars.
One investor remarked, "We were left to fend for ourselves" after realizing the returns were fictional, The New Yorker reported.
Another said, "I cry every day and have stopped seeing friends or family because of the shame of this financial loss and have a now severe distrust of other human beings," according to The New Yorker.
Despite his polished image, Horwitz's downfall exposed the vulnerabilities in Hollywood's complex, opaque business environment. The SEC described the case as one of the most egregious white-collar crimes in recent history, permanently banning Horwitz from securities trading.
The Legacy of Fraud
Horwitz's 20-year prison sentence, handed down in 2022, closed a chapter on Hollywood's largest Ponzi scheme, but the scars remain for his victims. They lost life savings, retirement funds and trust in those closest to them.
At Horwitz's sentencing hearing, the prosecution summed up the magnitude of his crime by pointing out Horwitz had betrayed "the trust of his own friends, people who lowered their guard because they could not possibly imagine that someone they had known for years would unflinchingly swindle them and their families out of their life savings," as reported by The New Yorker.
In the end, Horwitz was undone by his need for applause and the high-life — an unrelenting pursuit of stardom that left devastation in its wake.
References: Zachary J. Horwitz | Hollywood grifter: the actor who took Tinseltown for a Ponzi scheme ride | Master of Make-Believe A struggling actor struck it rich in Hollywood—then the F.B.I. showed up.
