New Class Action Targets Actor Zachary Horwitz, LA-Based City National Bank Relating to Alleged $690 Million Ponzi Scheme

May 03, 2021 2:44 PM ET

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 In the wake of a $690 million Ponzi Scheme engineered by actor Zachary J. Horwitz against investors nationwide, Miami-based law firm Levine Kellogg Lehman Schneider + Grossman (LKLSG) filed a class action complaint on April 20, 2021, against Horwitz, his company 1inMM LLC and their bank, City National Bank. 


The lawsuit was brought on behalf of four investors who allege that Horwitz offered promissory notes with guaranteed returns of between 35% and 45%, telling investors that he would use the proceeds from the notes to acquire movie distribution rights and license them to media companies for a profit.


Horwitz allegedly told investors that he had longstanding relationships with executives at HBO and Netflix. In truth, Horwitz had no such relationships and 1inMM had no distribution deals. Instead, Horwitz allegedly used new investor funds to pay principal and interest to previous investors in a classic Ponzi scheme. He allegedly used some of the funds for personal use, including a multimillion-dollar residence, lavish gambling trips, chartered jets and luxury cars.


The lawsuit also alleges that City National Bank knew about the alleged fraud and assisted it. City National held all of Horwitz's business and personal accounts, and allegedly knew about the fraud from a series of red flags associated with those accounts, including a series of transfers of money from investor accounts to Horwitz's personal account. When the accounts were nearly depleted, City National loaned Horwitz $1.4 million on a personal line of credit. 


LKLSG filed the case with San Francisco-based law firm Girard Sharp. More information is available at www.horwitzponzi.com.


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About Levine Kellogg Lehman Schneider + Grossman LLP
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