Film Industry Director Declared Responsible of Defrauding Platform Netflix For $11 Million over Non-Existent Show
A well-known film director was found guilty this week for orchestrating a scheme that swindled the streaming service Netflix out of a staggering $11 million earmarked for a television series that was never produced, authorities stated.
Particulars of the Legal Proceedings
Carl Rinsch, most famous for helming the film *47 Ronin* featuring Keanu Reeves, was convicted on multiple counts including wire fraud and concealing illicit funds, according to court records and federal prosecutors in New York.
"Today's verdict shows that when someone takes money from backers, we will trace the funds and ensure they face consequences," said a U.S. attorney.
The Alleged Scheme
Prosecutors alleged that Netflix had initially paid Rinsch approximately $44 million for an incomplete sci-fi series titled *White Horse*. Subsequently, the company sent an further $11 million after he asserted he required more funding to finalize the project.
However, instead of using the money for the series, Rinsch redirected the cash to a personal account. There, he engaged in a series of failed stock market bets, squandering about half of the $11 million within a couple of months, according to the case.
Lavish Spending with Studio Money
Following the market losses, Rinsch allegedly invested the remaining funds into the cryptocurrency market, making some gains. However, he then transferred those funds into his own bank account.
The subsequent actions involved significant high-end spending. Authorities outlined acquisitions that included:
- Five luxury car automobiles and a Ferrari.
- Over $652,000 on timepieces and clothing.
- A pair of beds for approximately $638,000.
- A further $295,000 on high-end linens and household items.
In addition, he reportedly used some of the money to settle approximately one point eight million dollars in personal debt bills.
Court Response and Sentencing
In a comment, Rinsch's attorney expressed disagreement with the verdict, arguing it "could set a dangerous precedent for creatives who become involved in business and creative disagreements with their benefactors."
Rinsch, forty-eight, did not finish the show. His court hearing is scheduled for April. The company involved chose not to issue a statement on the matter.
