How to avoid falling into a pyramid scam?
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New York (CNN Business) —
Zachary Horwitz, a small-time actor who admitted to running a multimillion-dollar Ponzi scheme, was sentenced to 20 years in federal prison on Monday.
The Justice Department said in a press release that Horowitz "raised at least $650 million on false claims that investor money would be used to license movies that HBO and Netflix had allegedly agreed to distribute overseas." ".
Zachary Horwitz, 35, flanked by attorneys Ryan Hedges, left, and Anthony Pacheco, was sentenced to a maximum of 20 years by a federal judge.
HBO, like CNN, is part of WarnerMedia.
In October, Horowitz pleaded guilty to a federal securities fraud charge and admitted running the Ponzi scheme.
He received a 240-month sentence, according to Monday's release, and must pay more than $230 million in restitution.
CNN has reached out to Horwitz's attorney for comment.
Horwitz, 35, was accused of putting some of the money in his personal accounts and using it to buy a personal residence for approximately $5.7 million in cash, travel to Las Vegas and fly on charter planes, according to a complaint filed by the Securities and Exchange Commission.
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Horwitz, better known by his stage name "Zach Avery," has spent the last decade acting in about a dozen mostly low-budget movies, including "Trespassers" and "The White Crow," according to his IMDb profile.
He also had a minor uncredited role in "Fury" starring Brad Pitt.
- Clare Duffy of CNN Business contributed to this report
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