Investigations Bulletin: DOJ Releases Highly Anticipated Fraud Report in 2021 | Arent fox


DOJ Releases Highly Anticipated Fraud Report in 2021

The DOJ released the Fraud Section’s 2021 year-to-date report outlining its 329 individual convictions, 30 successful lawsuits, and eight corporate resolutions that yielded approximately $3.3 billion in payments to U.S. and global authorities.

The 329 individual convictions represent a significant increase from 213 individual convictions in 2020, and are in part attributable to the Fraud Section’s continued prosecutions for PPP and Cares Act fraud. Likewise, the 30 cases won in 2021 are almost double the 16 cases won in 2020, as the country’s courts continue to reopen and operate in an ever-changing Covid-19 landscape. And the decrease in corporate resolutions from 13 corporate resolutions totaling nearly $9 billion in 2020 is likely attributable to record 2020 Foreign Corrupt Practices Act (FCPA) settlements.

Read the 2021 DOJ Fraud Section Report here.

The actor was sentenced to a maximum of 20 years in prison for the Ponzi scheme

Actor Zachary Horwitz (professionally known as Zach Avery) was sentenced to 240 months in prison and ordered to pay $230,361,884 in restitution after pleading guilty to one count of securities fraud for running a Ponzi scheme. Horwitz is best known for his roles in the films Last Moment of Clarity (2020), Hell Is Where the Home Is (2018), and Fury (2014).

According to the DOJ press release, Horwitz raised more than $650 million based on false claims that investor money would be used to acquire film and movie distribution rights that would be licensed to other companies. major media companies, such as Netflix and HBO, and provided investors with a fake movie. licensing and distribution agreements. Horwitz then used the investors’ money to pay off previous investors and for personal use, including the purchase of a $6 million home, luxury vehicles and private jet travel.

Read the DOJ press release here.


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