A mediocre actor named Zach Avery (37) became Hollywood's biggest scammer three years ago after creating a Ponzi scheme that raised 690 million dollars. Avery is back in the spotlight because Amazon has released the documentary Hollywood Ending, where ambition, strategy, and betrayal are the three fundamental pillars.
While studying at Indiana University, he met Mallory Hague, an attractive blonde with whom he soon started living together. Eager to start a life together, they moved to Chicago where Zach opened a healthy juice store while his girlfriend tried to make a living as a stylist. He shared with his girlfriend the emails he supposedly received from Howard Schultz(70), Starbucks' founder, praising his marketing strategy. What no one knew was that they were fake. The young man discovered his passion for acting after participating in some theater plays, and the couple moved to Hollywood.
They moved again and made their way. Avery met the Halivi brothers, Julio and Diego, who were dedicated to producing short films, and he partnered with them after showing them the emails from the CEO of Starbucks. They created the production company 1MM (One in a Million) with which they produced a dozen low-budget horror and science fiction films between 2012 and 2016. Meanwhile, Zach worked as an extra in some films like Fury (2014), with Brad Pitt (60).
In 2013, the production company started working with Gustavo Montadón, who had been vice president of distribution at Netflix in Latin America. The intention was to buy licenses for American films and series that they would then sell to streaming platforms. In 2014, Zach convinced several childhood friends to invest in the company promising them a 40% return. Suddenly, he raised a million dollars by enticing his acquaintances, telling them he was going to sell to Sony, Netflix, and HBO.
That same year, he had a lavish wedding with Mallory at the Four Seasons in Beverly Hills, where he flaunted his successful life. In 2015, two of his friends working in investment firms left their positions to create JJMT Capital, another investment firm to distribute film and television content. After a while, they raised 490 million dollars. To maintain the illusion of legitimacy, he provided investors with fake documents, including licensing agreements and emails supposedly from entertainment industry executives.
With the funds from new investors, Avery paid off the previous ones and financed his luxurious lifestyle. He bought a 6 million dollar mansion, had a car collection worth 500,000 dollars, and traveled business class to the most remote places on the planet. The scam collapsed in 2021 when some investors began demanding refunds as Zach could not sustain the payment cycle.
While sleeping in his luxurious residence, in April 2021, the FBI raided his house. He was charged with electronic fraud and later Avery pleaded guilty to securities fraud. On February 14, 2022, he was sentenced to 20 years in federal prison and ordered to pay 230 million dollars to his victims. Before the sentencing, Mallory asked for a divorce. She was not involved in the crime.