Hollywood Director Found Guilty of Scamming Streaming Giant Netflix Out of Millions over Phantom Series
A well-known Hollywood director was convicted on Thursday for masterminding a plot that defrauded the entertainment platform Netflix out of a staggering sum earmarked for a show that was never produced, prosecutors said.
Details of the Case
Carl Rinsch, most famous for helming the film *47 Ronin* featuring Keanu Reeves, was convicted on several charges including wire fraud and money laundering, as per legal documents and government attorneys in New York.
"This verdict demonstrates that if an individual steals from backers, we will trace the funds and hold them accountable," said a U.S. attorney.
The Alleged Fraudulent Plan
Prosecutors alleged that Netflix had initially disbursed Rinsch around $44 million for an unfinished science-fiction series titled *White Horse*. Subsequently, the company sent an additional payment after he claimed he required more funding to finalize production.
However, rather than allocating the funds for the show, Rinsch diverted the capital to a private bank account. There, he made a series of failed investments, losing roughly 50% of the multi-million dollar sum within a few months, prosecutors said.
Extravagant Purchases with Studio Money
After the market losses, Rinsch allegedly invested the leftover money into the digital currency market, making some gains. However, he then transferred those funds into his own account.
The subsequent actions involved significant luxury spending. Prosecutors outlined purchases that included:
- 5 luxury car vehicles and a Ferrari.
- Over $652,000 on timepieces and apparel.
- A pair of custom mattresses for around six hundred and thirty-eight thousand dollars.
- An additional $295,000 on luxury bedding and household items.
In addition, he reportedly used a portion of the funds to settle approximately $1.8 million in personal debt bills.
Legal Reaction and Sentencing
In a statement, Rinsch's attorney expressed disagreement with the outcome, arguing it "could set a concerning standard for creatives who become involved in business and artistic disagreements with their benefactors."
Rinsch, 48, never completed the show. His court hearing is scheduled for April. The company involved declined to comment on the conviction.
