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Zachary Joseph Horwitz, aka Zach Avery, came up with a Hollywood Ponzi scheme in 2014, scamming wealthy investors off millions of dollars. Although the figures vary from report to report, Avery is believed to have raised up to $650 million from his 'money-making' scheme.
Having acted alongside stars such as Brad Pitt and Brian Cox, the actor was yet to receive his big break in the industry. He somehow managed to secure a bit of glam and glitz Tinseltown had to offer, which led people to question his authenticity and honesty. Contradictory to his plans, he finally got five minutes of fame when his fraudulent activities came to light.
Avery's failure to make ends meet, as per promises made to investors, was his undoing. The second episode of ABC's The Con S2 delves further into the case that shocked Hollywood when one of their own tried to defraud them in a multimillion dollar Ponzi scheme.
Titled The Hollywood Mogul Con, the episode will air on Thursday, August 4, 2022, at 10 pm ET on ABC.
Read five facts about Zach Avery ahead of the episode premiere.
Five lesser-known facts about Zach Avery
1) Zach Avery and the fradulent licensing company, 1in MM Capital LLC
Investigators claimed that Zach Avery, 1inMM Capital LLC ("1inmM"), along with other possible subjects, were allegedly engaged in a Ponzi scheme that deceived investors out of almost $650 million over a period of more than five years.
The SEC filed a lawsuit against Avery and 1inMM on April 5, 2021, accusing the plaintiffs of violating federal securities laws between at least March 2014 and December 2019 by allegedly raising $650 million through the sale of fake licensing agreements that 1inMM had issued. They also promised investors, over 35% returns within a year.
Instead, it is claimed that Horwitz and 1inMM misused investor funds to repay phony profits on prior investors and purchase a $6 million mansion for his personal gains.
2) Avery's life was put-together until the Ponzi scheme
Born in 1986, Zach Avery grew up spending time between Florida and Indiana. According to reports, he even graduated from Indiana University with a Bachelor’s degree in Psychology before landing his debut role in 2009. He claimed that he moved from Chicago to Hollywood "with nothing more than his dog, a few suitcases, and a big dream," to give the actor within him a chance to surface.
The actor has also appeared in a number of movies such as The Gateway, The Devil Below, You're Not Alone, Last Moment of Clarity in recent years.
3) He was arrested last year and sentenced to federal prison earlier this year
As per the news reports, Zach Avery was arrested in April 2021. He pleaded guilty to a federal securities fraud charge in October of the same year. The actor also confessed to orchestrating a Ponzi scheme. A few months later in February 2022, he was sentenced to 20 years in federal prison and was expected to pay $230 million as a restitution amount.
4) Zach Avery's wife, Mallory Hagedorn, filed for divorce, not long after
Mallory claimed that her husband had been "deceiving and manipulating" her along with several others throughout the years. The mother-of-two denied claims of being involved in the scheme and filed for divorce in the Los Angeles County Superior Courts not long after his arrest in 2021. She said the following about Zach:
"Deceiving and manipulating me and everyone around him, and he is not the person that I believed he was."
There is not much known of her wife and sons. However, Avery always spoke of his "successful" relationship with his family, comprising his wife and two sons. He claimed that his wife, a professional hair stylist, has been supportive of his acting career throughout. In one of his early interviews with NYCasting, he reportedly stated:
"The one thing that my wife, Mallory, and I have done is make a pact that we will not be away from each other for more than two weeks at a time. So if I am shooting somewhere – we will work out a way for them to come out or me to come back so that we don’t go too long apart. It’s crucial to a successful relationship for us."
5) Avery is worth millions according to reports
Zach Avery, a California native and B-grade actor, has an estimated net worth of $5 million, reports Exact Net Worth. The actor has previously played roles in a number of films and has acted alongside Brad Pitt and Brian Cox as well.
Tune in to The Con on ABC this Thursday at 10 pm ET to see how Zach Avery shook the very foundations of the film industry with his multi-million dollar Hollywood Ponzi scheme.
