Hollywood Director Declared Guilty of Scamming Streaming Giant Netflix For $11 Million over Phantom Series
A well-known film director was found guilty on Thursday for orchestrating a scheme that defrauded the streaming service Netflix out of an astonishing sum allocated for a show that was never produced, prosecutors said.
Details of the Case
Carl Rinsch, most famous for directing the movie *47 Ronin* featuring Keanu Reeves, was convicted on several charges including wire fraud and money laundering, as per court records and government attorneys in New York.
"This conviction demonstrates that when someone takes money from investors, we will trace the funds and ensure they face consequences," said the prosecutor.
The Alleged Scheme
Authorities claimed that Netflix had originally disbursed Rinsch approximately $44 million for an unfinished science-fiction series called *White Horse*. Later, the company provided an further payment after he asserted he required extra capital to finalize production.
Yet, rather than allocating the money for the show, Rinsch redirected the cash to a private bank account. There, he made a series of unsuccessful stock market bets, losing about 50% of the multi-million dollar sum within a few months, according to the case.
Lavish Spending with Company Money
After the market losses, Rinsch reportedly placed the leftover money into the digital currency market, making some profit. But, he then deposited those proceeds into his own account.
What followed next involved major high-end expenditures. Prosecutors detailed acquisitions that included:
- Five luxury car automobiles and one sports car.
- Over $652,000 on timepieces and clothing.
- Two beds for around six hundred and thirty-eight thousand dollars.
- An additional $295,000 on luxury bedding and household items.
In addition, he allegedly used some of the money to settle about one point eight million dollars in credit card balances.
Legal Reaction and Sentencing
In a statement, Rinsch's legal counsel voiced dismay with the outcome, arguing it "could set a dangerous standard for artists who become involved in contractual and creative disagreements with their benefactors."
Rinsch, forty-eight, never completed the show. His sentencing date is scheduled for this spring. The streaming platform chose not to issue a statement on the conviction.
