Film Industry Filmmaker Found Guilty of Scamming Streaming Giant Netflix For $11 Million over Phantom Show
A prominent Hollywood director was convicted this week for masterminding a plot that defrauded the streaming service Netflix out of an astonishing sum allocated for a show that was never produced, authorities said.
Details of the Case
Carl Rinsch, best known for helming the movie *47 Ronin* featuring Keanu Reeves, was found guilty on several counts including financial fraud and money laundering, as per court records and federal prosecutors in New York.
"This conviction shows that when someone takes money from investors, we will trace the funds and hold them accountable," said the prosecutor.
The Alleged Scheme
Prosecutors alleged that Netflix had originally disbursed Rinsch approximately $44 million for an unfinished science-fiction project titled *White Horse*. Later, the streamer sent an additional $11 million after he claimed he required more funding to complete the project.
However, instead of allocating the funds for the series, Rinsch redirected the capital to a private bank account. There, he made a string of unsuccessful investments, squandering about half of the $11 million within a couple of months, according to the case.
Extravagant Purchases with Studio Funds
After the market losses, Rinsch reportedly placed the leftover money into the cryptocurrency market, netting some gains. But, he then transferred those proceeds into his personal bank account.
The subsequent actions involved significant high-end spending. Authorities outlined purchases that included:
- Five Rolls-Royce automobiles and one Ferrari.
- Over $652,000 on timepieces and clothing.
- Two beds for around $638,000.
- An additional $295,000 on luxury bedding and home furnishings.
Furthermore, he allegedly used some of the money to pay off about one point eight million dollars in personal debt balances.
Legal Reaction and Next Steps
In a statement, Rinsch's legal counsel expressed disagreement with the outcome, arguing it "establishes a concerning precedent for artists who become involved in business and creative disputes with their benefactors."
Rinsch, forty-eight, did not finish the show. His court hearing is set for April. The company involved chose not to issue a statement on the conviction.