Film Industry Director Found Guilty of Scamming Streaming Giant Netflix For Millions over Phantom Show
A prominent film director was convicted on Thursday for orchestrating a scheme that swindled the entertainment platform Netflix out of a staggering $11 million allocated for a show that never materialized, authorities stated.
Particulars of the Case
Carl Rinsch, most famous for helming the movie *47 Ronin* featuring the actor Keanu Reeves, was convicted on several charges including wire fraud and money laundering, according to court records and federal prosecutors in New York.
"This verdict shows that when someone steals from investors, we will follow the money and hold them accountable," said the prosecutor.
The Alleged Fraudulent Plan
Prosecutors alleged that Netflix had initially paid Rinsch approximately a sum for an incomplete sci-fi series called *White Horse*. Subsequently, the streamer sent an additional payment after he claimed he required extra capital to finalize the project.
However, rather than using the funds for the show, Rinsch redirected the cash to a personal account. There, he engaged in a series of failed stock market bets, losing roughly half of the $11 million within a couple of months, according to the case.
Extravagant Spending with Studio Funds
After the failed investments, Rinsch reportedly invested the remaining funds into the digital currency market, netting some gains. However, he then deposited those proceeds into his personal account.
What followed next involved major luxury expenditures. Prosecutors detailed purchases that included:
- 5 luxury car vehicles and one Ferrari.
- Over six hundred and fifty-two thousand dollars on timepieces and clothing.
- A pair of beds for around six hundred and thirty-eight thousand dollars.
- A further $295,000 on high-end linens and home furnishings.
In addition, he allegedly used a portion of the funds to pay off about one point eight million dollars in personal debt balances.
Legal Reaction and Sentencing
In a comment, Rinsch's attorney expressed disagreement with the outcome, suggesting it "establishes a dangerous precedent for artists who become involved in business and artistic disagreements with their financial backers."
Rinsch, forty-eight, never completed the show. His sentencing date is scheduled for April. The streaming platform chose not to issue a statement on the matter.
