The SEC filed SEC v. Horwitz in the Central District of California on April 5, 2021, alleging that Defendant Horowitz violated federal securities laws in connection with fraudulent promissory notes issued by Horwitz’s company. Specifically, the complaint alleges violations of Sections 17(a) of the Securities Act, 10(b) of the Securities Exchange Act, and 10b-5 of the Exchange Act Rules.

Defendant Horwitz was the owner and operator of Defendant 1inMM, which purported to be a company in the business of obtaining distribution rights to certain movies in order to license those rights to media companies like Netflix and HBO.

Horwitz faked emails and other documents to make it appear as if he had an existing relationship with these media companies and used those false documents to induce investors into purchasing promissory notes that falsely promised a 35-43% expected return upon maturity.  On these representations, Horwitz raised upwards of $690 Million from investors.

In reality, Horwitz did not have a relationship with these companies and instead allegedly used some of the invested funds to finance his personal home and trips to Las Vegas, pay off debts, and even pay for a celebrity interior designer.  Horwitz is also accused of paying back earlier investors with newly obtained investments in Ponzi fashion.

The SEC has charged Horwitz of violating multiple sections of the Securities Act and Securities Exchange Act in connection with this scheme, praying for disgorgement, civil penalties, and a restraining order.