Ep 10. Lights! Camera! Fraud!

In season 8, episode 10 of American Greed titled "Lights! Camera! Fraud!", viewers are taken on a journey through a tale of a Hollywood deal gone bad, resulting in one of the most significant cases of investment fraud in Los Angeles history. The episode begins by introducing us to a man named Zachary Horwitz, known professionally as Zach Avery, an aspiring Hollywood actor turned film producer. Horwitz had founded his own production company, 1inMM Capital, which was focused on financing independent movies.

While reviewing the circumstances leading up to the fraud, viewers learn that Horwitz was involved in buying and selling the distribution rights to various films, often foreign-language independent movies. By 2020, he had raised $690 million from various investors, including hedge funds and wealthy individuals, claiming that he had pre-sold distribution rights to major streaming services such as Netflix and HBO, which was profitable for investors. Investors trusted Horwitz's representations that resulted in them investing their life savings in his company. The company claimed to have signed deals with the likes of HBO and Netflix, but in reality, they had no affiliation or business relationship with either one of them.

As the episode unfolds, viewers learn about Horwitz's entrepreneurial breakthrough. He sent fake emails informing his investors that: the movie rights to various films had been sold to distributors, when in actuality, they had not been. In these emails, he created aliases for HBO and Netflix executives, and 1inMM Capital employees would send these emails to inflate their worth and the value of their shares, akin to a Ponzi scheme. Horwitz claimed that he used the funds raised to buy the rights for the distribution of the movies. He even went as far as to fake documents and movie distribution agreements.

However, in late 2019, Horwitz's scheme started to unravel when a film financing company demanded repayment of its $227 million loan after failing to find any evidence of pre-selling rights or deals with distribution companies. 1inMM Capital could not repay the loan, leading to an investigation by the US Securities and Exchange Commission (SEC) for fraud.

The episode details how Horwitz had also used the money from investors to fund his extravagant lifestyle, such as buying a mansion in Beverlywood and owning a fleet of luxury cars. He was arrested in April 2021 and charged with defrauding investors of over $227 million.

Through archive footage, interviews with FBI agents involved in the investigation, and Horwitz's partners and investors, the episode provides a clear picture of how a simple idea to make money morphed into a grand-scale investment fraud scheme. The episode provides a warning to future investors, urging them to always investigate an investment opportunity before investing their money.

In conclusion, American Greed season 8 episode 10, "Lights! Camera! Fraud!", is an enthralling tale of a Hollywood dream turned into a fraud nightmare. Viewers are taken on a journey through the rise of Zach Horwitz and his company 1inMM Capital, the deceitful documents, and emails that fueled the Ponzi scheme, and the unraveling of Horwitz's empire that led to his arrest. The episode serves as a cautionary tale for anyone looking to invest in the entertainment industry and emphasizes the importance of performing due diligence before making any investments.