Film Industry Director Found Guilty of Scamming Streaming Giant Netflix Out of $11 Million over Phantom Series
A prominent Hollywood director was convicted this week for orchestrating a scheme 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 Legal Proceedings
Carl Rinsch, most famous for directing the film *47 Ronin* starring the actor Keanu Reeves, was found guilty on multiple counts including financial fraud and money laundering, as per court records and government attorneys in New York.
"Today's conviction shows that when someone takes money from backers, we will follow the money and ensure they face consequences," stated the prosecutor.
Reported Scheme
Authorities claimed that Netflix had originally paid Rinsch around $44 million for an incomplete science-fiction project titled *White Horse*. Later, the company sent an further $11 million after he asserted he needed more funding to finalize the project.
Yet, rather than using the funds for the show, Rinsch diverted the capital to a personal account. There, he made a series of failed investments, squandering roughly half of the multi-million dollar sum within a couple of months, according to the case.
Extravagant Spending with Company Money
After the market losses, Rinsch reportedly placed the remaining funds into the digital currency market, making some gains. However, he then transferred those funds into his personal bank account.
The subsequent actions involved significant high-end expenditures. Authorities detailed purchases that included:
- 5 Rolls-Royce vehicles and a sports car.
- Over six hundred and fifty-two thousand dollars on designer watches and clothing.
- A pair of custom mattresses for around $638,000.
- An additional $295,000 on high-end linens and household items.
In addition, he allegedly used some of the money to pay off about $1.8 million in credit card balances.
Court Response and Sentencing
In a comment, Rinsch's attorney voiced disagreement with the verdict, arguing it "establishes a dangerous precedent for artists who become involved in contractual and creative disputes with their financial backers."
Rinsch, 48, never completed the show. His sentencing date is scheduled for April. The streaming platform chose not to comment on the matter.
