The claims are outlined in legal documents that U.S. prosecutors and the Securities and Exchange Commission released this week alleging Horwitz, 34, was running a massive Ponzi scheme. His scam: a made-up story that he had exclusive deals to sell films to Netflix and HBO. Dating back to 2014, the SEC said he raised a shocking $690m in fraudulent funds. On Tuesday, Horwitz was arrested.
Even as the feds closed in, he kept trying to reassure clients that his business was real. In a March 12 email to his biggest investor, Horwitz claimed he had sorted things out with HBO and that 1inMM and its backers would be paid in full without the need for litigation, according to the Justice Department’s criminal complaint. But he added that “Netflix is a real problem at the moment.”