On February 14, 2024, the Securities and Exchange Commission (SEC) secured a final judgment against Zachary Horwitz for orchestrating a Ponzi scheme that deceitfully amassed over $690 million from investors. Horwitz had falsely claimed to be selling movie rights to prominent streaming services such as Netflix and HBO, boasting fabricated agreements and communications to support these claims. Despite his assertions of a successful track record, he had no actual business dealings with these companies.
The SEC’s complaint revealed that Horwitz promised investors extraordinarily high returns of over 35%, funding these so-called returns from the capital of new investors, rather than genuine profits. The scheme also involved Horwitz misappropriating funds for personal extravagances, including the purchase of a luxury home, extravagant trips, and high-end interior design services.
The court’s final ruling enjoins Horwitz from further violations of the antifraud sections of the Securities Act of 1933 and the Securities Exchange Act of 1934. Additionally, Horwitz is ordered to disgorge $62,847,901.05, the net profits from his fraudulent activities, along with $11,375,011.28 in prejudgment interest. However, this amount has been offset by a substantial restitution order from a related criminal case, mandating Horwitz to pay $230,361,884 to the victims of his scheme.
For individuals impacted by such fraudulent securities activities, engaging with law firms practicing in the field of securities arbitration, such as Bakhtiari & Harrison, is crucial. These firms are adept at navigating the complexities of securities law and arbitration processes, providing essential services in investor recovery. With expertise in both litigation and arbitration, Bakhtiari & Harrison offer valuable assistance to investors seeking to recover losses from securities fraud, ensuring that justice is served and financial redress is achieved for those affected by such deceptive investment schemes.