Girard Sharp First to File 1inMM Ponzi Case
On April 20, Girard Sharp filed the first class action lawsuit seeking to restore the losses of investors who fell prey to a Ponzi scheme perpetrated by actor Zachary Horwitz and his company, 1inMM Capital.
Plaintiffs are four investors who assert claims for relief against Horwitz, 1inMM, and City National Bank—the financial institution that received the investors’ money and serviced the accounts Horwitz used to carry out the fraud. Plaintiffs sue on behalf of all others who invested in 1inMM promissory notes.
Horwitz was arrested earlier this month and faces criminal charges by the SEC.
Plaintiffs allege Horwitz and 1inMM falsely marketed and sold promissory notes as high-yield investments backed by content distribution agreements with Netflix and HBO that did not exist. Horwitz stole millions of dollars and used new investor money to pay investor returns, raising more than $690 million before his Ponzi scheme collapsed, Plaintiffs allege.
Plaintiffs further allege that City National Bank substantially assisted Horwitz’s fraudulent scheme. In addition to receiving and processing all of the 1inMM investments, City National loaned Horwitz $1.4 million during 2019 and 2020 on a personal line of credit. Plaintiffs’ complaint alleges facts supporting their claim that City National had notice of Horwitz’s fraud from a series of red flags associated with his personal and 1inMM accounts at the bank.
If you invested in 1inMM Capital, you may have a claim for relief. For a free consultation about your claims, contact one of our investment fraud attorneys by calling toll-free at (866) 981-4800.
We have recovered over a billion dollars for our clients against some of the nation’s largest corporations, such as Raymond James, Peregrine Financial Group, and OppenheimerFunds, in cases arising from securities fraud, false advertising and other unfair business practices.
Find more information on the class action here.