Film Industry Filmmaker Declared Responsible of Defrauding Platform Netflix Out of $11 Million over Phantom Show
A well-known Hollywood director was found guilty on Thursday for orchestrating a scheme that swindled the streaming service Netflix out of a staggering sum earmarked for a show that never materialized, prosecutors said.
Particulars of the Legal Proceedings
Carl Rinsch, most famous for directing the film *47 Ronin* featuring Keanu Reeves, was found guilty on several counts including financial fraud and money laundering, according to legal documents and government attorneys in New York.
"This conviction demonstrates that if an individual steals from investors, we will follow the money and hold them accountable," said a U.S. attorney.
Reported Fraudulent Plan
Authorities claimed that Netflix had originally paid Rinsch around $44 million for an incomplete sci-fi project called *White Horse*. Subsequently, the streamer provided an further $11 million after he claimed he required more funding to complete production.
However, rather than using the funds for the show, Rinsch redirected the capital to a personal account. From there, he engaged in a series of unsuccessful stock market bets, losing roughly 50% of the multi-million dollar sum within a couple of months, prosecutors said.
Lavish Purchases with Studio Funds
Following the market losses, Rinsch reportedly placed the leftover money into the cryptocurrency market, making some profit. But, he then transferred those funds into his personal account.
The subsequent actions involved significant luxury expenditures. Prosecutors detailed purchases that included:
- 5 luxury car automobiles and a sports car.
- Over six hundred and fifty-two thousand dollars on timepieces and clothing.
- A pair of custom mattresses for approximately six hundred and thirty-eight thousand dollars.
- A further $295,000 on luxury bedding and household items.
Furthermore, he reportedly used a portion of the funds to settle about one point eight million dollars in personal debt bills.
Court Response and Sentencing
In a statement, Rinsch's legal counsel voiced disagreement with the verdict, arguing it "establishes a concerning standard for artists who become embroiled in contractual and artistic disagreements with their benefactors."
Rinsch, 48, did not finish the television series. His court hearing is set for this spring. The company involved chose not to issue a statement on the matter.
