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The 34-year-old allegedly defrauded money from investors who thought their money would be used to finance distribution rights for films to run on HBO and Netflix, the Wall Street Journal reported. 

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zach avery actor arrested  million ponzi scheme

Source: ZACH AVERY/TWITTER

He was arrested on Monday, April 5, by the FBI after several investment firms allegedly gave him almost a quarter-billion dollars over a five-year period.

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Avery reportedly began to use fake promotional material via 1inMM Capital LLC in 2015 to dupe investors into handing over the funds, according to the U.S. Attorney’s Office and gave them fake license agreements and fake distribution agreements with Netflix and HBO. Both companies said they had no such deals with Avery. 

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He was given six-month and one-year promissory notes that were meant to go towards acquiring the rights to films but instead funded his lavish lifestyle including a $6 million Beverlywood home with the money and used it to repay prior investors. 

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He made his first appearance in federal court in downtown L.A. on Tuesday, April 6, and bail has been set at $1 million with an arraignment scheduled for May 13.  

Avery reportedly raised more than $690 million in total in the scheme but $227 million was yet to be repaid to victims, the Department of Justice said. 

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His acting credits include The Devil Below, You’re Not Alone and a Gateway which is yet to be released. 

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