Film Industry Director Found Guilty of Defrauding Streaming Giant Netflix For $11 Million for Phantom Series
A well-known Hollywood director was convicted this week for masterminding a plot that defrauded the entertainment platform Netflix out of an astonishing $11 million allocated for a television series that never materialized, authorities stated.
Particulars of the Case
Carl Rinsch, most famous for directing the film *47 Ronin* featuring Keanu Reeves, was convicted on several charges including wire fraud and concealing illicit funds, according to court records and federal prosecutors in New York.
"This verdict demonstrates that if an individual steals from investors, we will trace the funds and hold them accountable," stated a U.S. attorney.
Reported Scheme
Authorities claimed that Netflix had originally disbursed Rinsch around a sum for an unfinished science-fiction project called *White Horse*. Subsequently, the streamer sent an further $11 million after he claimed he required extra capital to finalize production.
However, instead of using the funds for the show, Rinsch redirected the capital to a personal account. From there, he made a series of failed investments, squandering about 50% of the multi-million dollar sum within a couple of months, prosecutors said.
Lavish Spending with Company Money
Following the failed investments, Rinsch allegedly invested the leftover money into the cryptocurrency market, making some profit. But, he then transferred those proceeds into his personal account.
What followed next involved major high-end expenditures. Authorities detailed purchases that included:
- 5 luxury car automobiles and a sports car.
- More than $652,000 on timepieces and apparel.
- Two beds for around $638,000.
- An additional $295,000 on high-end linens and household items.
Furthermore, he reportedly used some of the funds to settle approximately one point eight million dollars in credit card bills.
Court Reaction and Next Steps
In a comment, Rinsch's attorney voiced dismay with the verdict, arguing it "establishes a concerning precedent for artists who become involved in business and artistic disagreements with their benefactors."
Rinsch, forty-eight, never completed the television series. His sentencing date is scheduled for this spring. The company involved chose not to issue a statement on the conviction.
