Chicago-based Stoltmann Law Offices has represented investors who’ve suffered losses in Ponzi schemes. All of the most egregious swindles start out with a simple dual promise: High returns and no risk. That was the case with JJMT investments, which sold bogus promissory notes.
Started by fraternity brothers from Indiana University, JJMT lured investors with 30% to 40% returns on notes that financed movie deals in Hollywood. According to Bloomberg, “Zachary Horwitz, a former actor, duped his old college friends and their families out of tens of millions of dollars. Three of Horwitz’s buddies from Indiana University said he tricked them into providing him with hundreds of millions of dollars in loans to fund bogus Latin American licensing deals with Netflix Inc. and HBO.”
From mid 2015 to late 2019, “JJMT Capital provided financing to Horwitz’s company 1inMM in exchange for promissory notes with a total principal value of approximately $485 million, Bloomberg stated. Horwitz’s company still allegedly owes investors “around $165 million before interest – including more than $42 million of their own money.”