New Class Action Targets Actor Zachary Horwitz, LA-Based City National Bank Relating to Alleged $690 Million Ponzi Scheme
Class Action Lawsuit - May 03, 2021 2:44 PM ET
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.
Attorney Advertising. The law firm responsible for this advertisement is Levine Kellogg Lehman Schneider + Grossman LLP (www.lklsg.com). Prior results do not guarantee or predict similar outcomes with respect to future matters. Opportunities to discuss your particular case are welcomed. All communications are treated confidentially.
About Levine Kellogg Lehman Schneider + Grossman LLP
LKLSG is a Miami-based commercial law firm providing focused, efficient, and hands-on representation in high-stakes legal proceedings including complex commercial litigation, class actions, bankruptcy and receiverships, lender/borrower litigation and workouts and labor and employment litigation.
URL : https://lklsg.com
Tags: Wire, Classaction-Marketing, Legal Newswire, United States, English