Film Industry Director Declared Guilty of Scamming Platform Netflix For Millions for Phantom Series
A prominent film director was convicted on Thursday for masterminding a plot that defrauded the entertainment platform Netflix out of a staggering $11 million earmarked for a show that never materialized, authorities stated.
Particulars of the Case
Carl Rinsch, best known for directing the movie *47 Ronin* featuring the actor Keanu Reeves, was found guilty on several counts including wire fraud and concealing illicit funds, as per legal documents and government attorneys in New York.
"Today's conviction shows that when someone takes money from investors, we will trace the funds and hold them accountable," said the prosecutor.
The Alleged Fraudulent Plan
Prosecutors alleged that Netflix had originally disbursed Rinsch approximately a sum for an incomplete science-fiction project called *White Horse*. Later, the streamer provided an additional $11 million after he asserted he needed more funding to finalize production.
Yet, instead of allocating the money for the series, Rinsch redirected the cash to a private bank account. There, he engaged in a series of failed investments, losing about half of the multi-million dollar sum within a few months, according to the case.
Extravagant Spending with Company Money
After the market losses, Rinsch reportedly invested the leftover money into the cryptocurrency market, making some profit. But, he then deposited those proceeds into his personal account.
What followed next involved major luxury spending. Authorities detailed acquisitions that included:
- Five Rolls-Royce vehicles and one Ferrari.
- Over $652,000 on timepieces and apparel.
- A pair of beds for approximately $638,000.
- An additional $295,000 on high-end linens and household items.
In addition, he reportedly used a portion of the funds to pay off about $1.8 million in personal debt bills.
Court Response and Next Steps
In a comment, Rinsch's attorney voiced dismay with the outcome, arguing it "establishes a dangerous standard for creatives who become involved in contractual and creative disagreements with their benefactors."
Rinsch, forty-eight, did not finish the television series. His court hearing is scheduled for this spring. The company involved declined to issue a statement on the conviction.
