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Zach Avery

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Zach Avery
Born
Zachary Joseph Horwitz

(1986-12-05) December 5, 1986 (age 37)
Berkeley, California, U.S.
Occupation(s)Actor and producer
Years active2009–2021
Spouse
Mallory Hagedorn
​
​
(m. 2014⁠–⁠2021)​
Children2[1]
Criminal information
StatusIncarcerated
Criminal chargeSecurities fraud
Penalty20 years imprisonment
Imprisoned atFCI Terminal Island

Zachary Joseph Horwitz (born December 5, 1986[2]), also known by his stage name Zach Avery, is an American former actor and producer. In 2021, he pleaded guilty to securities fraud for his role in defrauding investors of $227 million through a Ponzi scheme and, as a result, was sentenced to twenty years in prison in 2022.[3]

Early life

[edit]

Avery was born Zachary Joseph Horwitz in Berkeley, California. His parents separated by divorce when Avery was 10 years old.[4] Avery grew up in Tampa, Florida, and moved to Fort Wayne, Indiana, where he was raised by his mother and a step-father, Robert Kozlowski after his first year in high school.[5]

In 2005, he graduated from Carroll High School (Fort Wayne, Indiana).[6] Fellow classmates have described him as a "through and through" jock, who starred for the school football team, but had no known involvement in acting at school.[7]

Avery attended Indiana University Bloomington, graduating in 2010.[8] Avery played intramural football in college, although he would later claim that an injury kept him out of the National Football League.[9][10][7][11] During his college years, he met his future wife, Mallory Hagedorn.[12]

Career

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After college, Avery and Hagedorn moved to Chicago, where Avery started a Doctoral Program in the Chicago School of Professional Psychology,[9][10][4] but dropped out 3 months later.[5] In 2011, while in Chicago, Avery heavily invested his money into his first enterprise, a juice bar called "Fül”. The business closed after just a few months of operation.[13] He supplemented his income by selling Quickbooks software door-to-door.[10][9]

A year after Fül was established, Avery created a fake email from Howard Schultz (Starbucks’ former CEO) reportedly offering him a lucrative job in Los Angeles as the leader of the "entrepreneur outreach" program for his venture capital firm "Mavron". Avery used the fake job offer as a way to convince his wife to close down "Fül" for good in order to move to Los Angeles.[13] On New Year's Eve 2011, Avery moved to Los Angeles.[10]

In Chicago, Avery claims he attended underground comedy shows and joined local theatre groups as a way of meeting new friends,[10][13] but there is no evidence to support this claim. Upon moving to Hollywood he started pursuing an acting career,[8] in particular to pursue his dream of becoming a Hollywood A-lister.[13]

Hollywood publicist Nedda Soltani, who was assigned by the company "Entertainment Fusion Group" to help boost Avery's profile as an actor, stated that Avery's time in Hollywood was a split between acting and a "financial startup situation" where he "invested in emerging brands and companies".[14]

Fraud

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Investment scheme

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In 2013, Avery was a co-founder, along with the Hallivis brothers (Julio and Diego Hallivis), of the 1inMM Productions company (“One in a Million”).[15][16] The Hallivis brother said “We created 1inMM Productions to produce high concept genre films with an edgy and unique approach to storytelling ... Together, we have a shared commitment of cultivating the rise of a new class of auteurs.”[15] One of the company's projects of note was a new film fund to produce and finance two to three elevated genre films under $5M per year for global audiences.[15]

In 2015[17][18] the company had purported to start to produce, acquire, and distribute content to mainstream audiences.[19] Avery had told investors that he had acquired and distributed dozens of films including titles like the documentary Active Measures, the Italian comedy-drama and Director’s Fortnight selection Lucia's Grace, the Canadian Indigenous-focused zombie film Blood Quantum, and the French drama La Melodie,[14][8] particularly in Latin America.[17][18] In 2015, 1inMM's annual report touted that it had acquired and distributed 49 films “without incurring a single loss in the process.”[8]

Funds

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The scheme was promoted as a “safe” investment as it was one which acquired the rights to film titles prior to releasing funds for the film.[17][18] In total, investors had given him a combined $650 million for the fictitious movie deals with HBO and Netflix.[1] However, the funds were used to repay previous investors (i.e., using the money he took from new investors to repay old ones) and to bankroll his lifestyle. Avery's lifestyle expenses included, interior decorating ($706,000),[1] Mercedes Benz and Audi cars ($605,000), private jet and yacht trips ($345,000), Los Angeles party consultant services ($174,000), Las Vegas casinos and nightclubs ($136,000), credit-card payments to American Express ($6.9 million), and a Beverlywood residence ($5.7 million[12][20]).[1][17][18][8]

Defaults

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In late 2019, Avery began defaulting on payments due to investors. He blamed the problem on HBO and Netflix, which Avery claimed had refused to pay for movies they had licensed from his company.[14] In reality, neither Avery nor his company had ever done business with HBO or Netflix.[21] Avery had not secured any distribution rights, but forged hundreds of distribution contracts[5][1] as well as correspondence between himself and both HBO and Netflix in order to allay the scheme's investors' concerns.[8] The Federal Bureau of Investigation had estimated that Avery had defaulted around a total of $227 million in payments anticipated by investors.[14]

Conviction

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Avery was arrested on charges of wire fraud (18 U.S.C. § 1343[22]) on 6 April 2021,[3][12] in connection with the alleged orchestration of a $690 million[20] Ponzi scheme that began in 2015, defrauding investors of over $227 million based on false claims that investor money would be used to acquire licensing rights to films HBO and Netflix had agreed to distribute abroad[17][18][23][24][25][26] On 4 October 2021, Avery pleaded guilty to one count of securities fraud.[27] On 14 February 2022, Avery was sentenced to 20 years in federal prison and ordered to pay $230 million in restitution.[28][20] Horwitz is currently incarcerated at FCI Terminal Island.[29]

Victims' impact

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Friends and fellow Indiana University graduates Jake Wundrelin, Joe deAlteris, Matthew Schweinzger, and Tyler Crookston formed JJMT Capital (first initials of the founders), which went out and found dozens of investors for Avery's promissory notes, including their family, friends and professional contacts.[8] The largest source of investor funds for the scheme were raised by JJMT. In total, JJMT alone raised about $216 million, securities filings show, and entered into 500 promissory notes.[8] JJMT alerted federal law enforcement to the scheme when Avery stopped making payments on 160 notes sold through JJMT ($160 million in principal and $59 million in returns).[8] JJMT's principals were reported as having been duped by Avery, and cooperated with the federal investigators.[14]

Adam Ferrari, petroleum engineer, who bought nine of the promissory notes ($250,000) through JJMT with a promise of 25% interest, lost $100,000 and subsequently filed a lawsuit against JJMT.[8]

The scheme had impacted over 250 investors.[1] Some investors were financially ruined in what prosecutors called a crime of “staggering magnitude”.[1] Avery's prosecutor stated that some of his victims had been those close to him.

"He began by betraying 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."[5]

Filmography

[edit]

Film

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Avery's screen debut was claimed to be in the 2009 film G.E.D. However, doubt has been cast on the veracity of this claim, with Ivan Parron, a lawyer for Cess Silvera, the director of G.E.D., saying that Silvera had never heard of Avery.[14]

Avery appeared in roles of movies being financed by 1inMM Productions, and being produced by Julio and Diego Hallivis, including The Shifter (2014),[30][9] The Laughing Man (2016),[31][32][33] Curvature (2017),[15] Hell Is Where the Home Is (2018),[34][35] and The Devil Below (2021)[34] etc. The Shifter marked Avery's first 'in front of the camera' role (outside of the theatre).[9][4] The Laughing Man (2016), based on the backstory of the Joker, was Avery's first film with a notable level of success, reaching the attention of 3 million viewers on YouTube in the first couple of weeks.[4]

Year Title Role Notes
2021 The Gateway[36][37] Mike[36][37]
2021 The Devil Below[38][39][40][41] Jaime Cowan[42][41]
2020 Last Moment of Clarity[43][39][44][9][45] Sam Pivnic[39][9][45]
2020 You're Not Alone[46][15] Mark[46]
2018 Farming[45][10] Officer Martin Fellows[45][10]
2018 Hell Is Where the Home Is[6][15] Joseph
2017 Curvature[15] Alex
2016 The Laughing Man[47][31][33] Laughing Man[31] Short film
2014 Fury[5][6][48] SS medic[48] Uncredited[48]
2014 Shifter[30][9][4] James Striker[30][9][4] Short film
2013 Nameless Basketball Player Short film
2012 Feign Demon 3 Short film
2011 The Duel Rich Hanger
2009 G.E.D.[49] Thug[49] Doubt exists[14]

Portrayals

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Real-life documentaries about Avery include:

Series Season Episode Original Air Date
The Con 2 "The Hollywood Mogul Con" 4 August 2022[50]

Personal life

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Avery married hair stylist Mallory Hagedorn, whom he had met in college, in 2014.[12] Hagedorn petitioned for divorce the same day her husband was arrested, filing for sole custody of their son.[12] Hagedorn stated that Avery was “deceiving and manipulating me and everyone around him, and he is not the person that I believed he was.”[13] They have two children.[1][12][51][4]

References

[edit]
  1. ^ a b c d e f g h Finnegan, Michael (14 February 2022). "Actor who faked movie deals sentenced to 20 years in prison for massive Ponzi scheme". Los Angeles Times. Retrieved May 28, 2022.
  2. ^ "The birth of Zachary Horwitz". California Birth Index (www.californiabirthindex.org). Archived from the original on 12 October 2023. Retrieved 12 October 2023.
  3. ^ a b Finnegan, Michael (April 6, 2021). "Hollywood actor arrested in alleged $227-million Ponzi scheme". Los Angeles Times. Retrieved April 8, 2021.
  4. ^ a b c d e f g "Zach Avery's biography, net worth, fact, career, awards and life story". ZGR (www.zgr.net). Archived from the original on 21 October 2023. Retrieved 21 October 2023.
  5. ^ a b c d e McKay, Bronwyn (16 February 2022). "Who is Zachary Horwitz? The Hollywood actor behind the R9.8 billion movie ponzi scheme". News 24 (www.news24.com). Archived from the original on 16 October 2023. Retrieved 16 October 2023.
  6. ^ a b c "Actor from Fort Wayne sentenced in multi-million dollar Ponzi scheme". FOX 55 Fort Wayne (www.wfft.com). 18 February 2022. Archived from the original on 12 October 2023. Retrieved 16 October 2023.
  7. ^ a b Clark, Steve (11 April 2021). "I Went to High School with Zach Avery". Eve of Steve (www.eveofsteve.wordpress.com). Archived from the original on 17 October 2023. Retrieved 17 October 2023.
  8. ^ a b c d e f g h i j Vardi, Nathan (8 April 2021). "How Indiana University Bros Fueled A Hollywood Actor's $690 Million Ponzi Scheme". Forbes (www.forbes.com). Archived from the original on 8 April 2021. Retrieved 12 October 2023.
  9. ^ a b c d e f g h i "Interview with Film Star Zach Avery". Naluda (www.naludamagazine.com). 25 February 2019. Archived from the original on 14 April 2019. Retrieved 20 October 2023.
  10. ^ a b c d e f g "Feature: Actor Zach Avery Shares His Roles in "Farming," "The White Crow," and More Projects". Occhi Magazine (www.occhimagazine.com). 15 November 2018. Archived from the original on 23 October 2023. Retrieved 23 October 2023.
  11. ^ Osnos, Evan (May 27, 2024). "The Biggest Ponzi Scheme in Hollywood History". The New Yorker. ISSN 0028-792X. Retrieved May 29, 2024.
  12. ^ a b c d e f "Here's what happened to Zach Avery's wife Mallory Hagedorn". Newsweek. February 15, 2022. Archived from the original on June 29, 2022. Retrieved June 29, 2022.
  13. ^ a b c d e Taylor, Tom (17 April 2023). "The True Crime of Zachary Horwitz: How not to be a Hollywood hopeful and the dangers of pursuing a dream". Far Out Magazine (www.faroutmagazine.co.uk). Archived from the original on 17 April 2023. Retrieved 18 October 2023.
  14. ^ a b c d e f g Michaels, DaveUpdated (7 April 2021). "Actor Zachary Horwitz Arrested Over Alleged $690 Million Hollywood Ponzi Scheme". Wall Street Journal (www.wsj.com). Archived from the original on 7 April 2021. Retrieved 15 October 2023.
  15. ^ a b c d e f g Busch, Anita (21 August 2017). "1inMM Prods. Raises $5M In Funds For Genre Films". Deadline Hollywood. Archived from the original on 17 October 2023. Retrieved 17 October 2023.
  16. ^ Finnegan, Michael (23 April 2021). "A rising actor, fake HBO deals and one of Hollywood's most audacious Ponzi schemes". Los Angeles Times (www.latimes.com). Archived from the original on 19 June 2023. Retrieved 17 October 2023.
  17. ^ a b c d e "Beverlywood Man Arrested for Allegedly Bilking Investors by Falsely Claiming to License Latin American Film Rights to Netflix and HBO". United States Department of Justice. April 6, 2021. Archived from the original on April 9, 2021. Retrieved April 7, 2021.
  18. ^ a b c d e Fieldstadt, Elisha. "Actor ran $227 million Hollywood Ponzi scheme, feds say". NBC News (www.nbcnews.com). Archived from the original on 16 October 2023. Retrieved April 8, 2021.
  19. ^ "AFM: Diego Hallivis Directing Action-Thriller 'Borderline'". Yahoo Entertainment. November 5, 2017. Retrieved April 8, 2021.
  20. ^ a b c McLean, Rob (15 February 2022). "Hollywood actor sentenced to 20 years for multimillion-dollar Ponzi scheme". CNN (www.cnn.com). Archived from the original on 9 December 2022. Retrieved 18 October 2023.
  21. ^ Romano, Nick (15 February 2022). "Actor Zach Avery lands 20 years in prison for $650 million Ponzi scheme". Entertainment Weekly (www.ew.com). Archived from the original on 16 October 2023. Retrieved 16 October 2023.
  22. ^ "18 U.S. Code § 1343 - Fraud by wire, radio, or television". Legal Information Institute. Retrieved April 14, 2021.
  23. ^ "Actor Zach Avery arrested on suspicion of running $227 million Ponzi scheme". USA Today. Associated Press. Retrieved April 8, 2021.
  24. ^ "SEC Complaint: Zachary J. Horwitz and 1inMM Capital, LLC" (PDF). U.S. Securities and Exchange Commission. April 7, 2021.
  25. ^ Bandler, Aaron (April 7, 2021). "Actor Zach Avery Arrested Over Alleged Multi-Million Dollar Ponzi Scheme". Jewish Journal. Retrieved April 11, 2021.
  26. ^ Reiner, Reggie (April 7, 2021). "Actor Zachary Horwitz Charged in $700 Million Ponzi Scheme". Jewish Business News. Retrieved April 11, 2021.
  27. ^ Helsel, Phil (October 4, 2021). "Actor pleads guilty in $650 million Ponzi scheme that lied about Netflix, HBO deals". NBC News. Retrieved October 5, 2021 – via Yahoo News.
  28. ^ Finnegan, Michael (February 14, 2022). "Actor who faked movie deals sentenced to 20 years in prison for massive Ponzi scheme". Los Angeles Times. Retrieved February 15, 2022.
  29. ^ "BOP: Federal Inmates by Name".
  30. ^ a b c "A Live Action Sci-Fi Short Film: "shifter" - by The Hallivis Brothers". TheCGBros. 5 April 2019. Archived from the original on 19 October 2023. Retrieved 19 October 2023 – via Youtube (www.youtube.com).
  31. ^ a b c "The Laughing Man - A Joker Fan Film That Will Blow You Away!!!". Cultural Competence Disorder (www.ccd.nyc). 8 August 2016. Archived from the original on 23 March 2023. Retrieved 17 October 2023.
  32. ^ "The Laughing Man". Film Shortage (www.filmshortage.com). Archived from the original on 29 May 2023. Retrieved 22 October 2023.
  33. ^ a b Tomasi, Rollo (7 August 2016). "The Laughing Man (2016) Short Film: NSFW Questioning of The Joker in Psych Ward". Film Book (www.film-book.com). Archived from the original on 26 April 2018. Retrieved 17 October 2023.
  34. ^ a b Miska, Brad (17 May 2018). "'Shookum Hills': Two More Fall Through An Appalachian Sinkhole [Exclusive]". Bloody Disgusting. Archived from the original on 15 October 2023. Retrieved 17 October 2023.
  35. ^ unclecreepy (August 21, 2017). "1inMM Productions Releasing 2-3 Genre Films per Year; Hell Is Where the Home Is Announced as Next Project". Dread Central. Retrieved May 1, 2019.
  36. ^ a b D'Alessandro, Anthony (18 April 2019). "Shea Whigham, Bruce Dern & Zach Avery Board Metalwork Pictures' Neo-Noir Thriller 'The Gateway'". Deadline Hollywood. Archived from the original on 15 October 2023. Retrieved 15 October 2023.
  37. ^ a b Hoad, Phil (21 September 2021). "The Gateway review – if Dirty Harry worked for social services". The Guardian (www.theguardian.com). Archived from the original on 28 August 2022. Retrieved 15 October 2023.
  38. ^ Miles, Lauren (24 February 2021). "Movie Review – The Devil Below (2021)". Flickering Myth (www.flickeringmyth.com). Archived from the original on 12 October 2023. Retrieved 12 October 2023.
  39. ^ a b c Miles, Lauren (7 April 2021). "Movie Review – The Devil Below (2021)". New York Times (www.nytimes.com). Archived from the original on 25 November 2022. Retrieved 12 October 2023.
  40. ^ Patta, Gig (6 March 2021). "Bradley Parker On Returning to Horror with The Devil Below [Exclusive Interview]". LRM Online (www.rmonline.com). Archived from the original on 16 October 2023. Retrieved 16 October 2023.
  41. ^ a b Garlington, Keith (24 February 2021). "Review: "The Devil Below" (2021)". Keith and the Movies (www.keithandthemovies.com). Archived from the original on 27 May 2023. Retrieved 19 October 2023.
  42. ^ Hay, Carla (6 April 2021). "Review: 'The Devil Below,' starring Alicia Sanz, Adan Canto, Chinaza Uche, Zach Avery, Jonathan Sadowski and Will Patton". Culture Mix (www.culturemixonline.com). Archived from the original on 28 May 2023. Retrieved 19 October 2023.
  43. ^ Felperin, Leslie (2 March 2021). "Last Moment of Clarity review – neo-noir in double trouble". Guardian (www.theguardian.com). Archived from the original on 12 October 2023. Retrieved 12 October 2023.
  44. ^ McNary, Dave (February 16, 2018). "Carly Chaikin, Samara Weaving Join Thriller 'Last Moment of Clarity'". Variety. Retrieved May 1, 2019.
  45. ^ a b c d Kevin (19 November 2018). "Exclusive Interview: Pop Culturalist Chats with Zach Avery". Pop Culturalist. Archived from the original on 15 October 2023. Retrieved 17 October 2023.
  46. ^ a b Morazzini, Jim. "Review: You're Not Alone (2020)". Voices from the Balcony (www.voicesfromthebalcony.com). Archived from the original on 16 October 2023. Retrieved 16 October 2023.
  47. ^ James, Daron (5 August 2016). "How the Hallivis Bros Reincarnated The Joker & Made Viral Hit 'The Laughing Man'". No Film School. Archived from the original on 15 October 2023. Retrieved 8 April 2021.
  48. ^ a b c Elfrink, Tim (7 April 2021). "A Hollywood Actor Starred in Low-Budget Sci-Fi Films. On the Side, he Ran a $227 Million Ponzi Scheme, Feds Say". The Washington Post (www.washingtonpost.com). Archived from the original on 3 December 2022. Retrieved 19 October 2023.
  49. ^ a b Obinna (8 April 2021). "How Hollywood Actor Zach Avery Ran HBO and Netflix $690 Million Scam". Sidomex Entertainment (www.sidomexentertainment.com). Archived from the original on 19 October 2023. Retrieved 19 October 2023.
  50. ^ Mahato, Nikita (3 August 2022). "Where is Zach Avery now? Charges explored ahead of ABC's The Con Season 2 episode 2". Sportskeeda. Archived from the original on 19 November 2022. Retrieved 19 November 2022.
  51. ^ Peters, Shawn (February 25, 2019). "Rise and shine: Zach Avery talks about show business, fatherhood, and what it takes to follow your passion". Swagger Magazine. Retrieved April 12, 2021.
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