A well-known Hollywood director was found guilty on Thursday for masterminding a plot that defrauded the streaming service Netflix out of a staggering $11 million earmarked for a show that never materialized, prosecutors said.
Particulars of the Legal Proceedings
Carl Rinsch, most famous for directing the movie *47 Ronin* starring the actor Keanu Reeves, was found guilty on several counts including wire fraud and concealing illicit funds, according to legal documents and federal prosecutors in New York.
"Today's conviction shows that when someone steals from backers, we will trace the funds and ensure they face consequences," said the prosecutor.
The Alleged Fraudulent Plan
Authorities claimed that Netflix had initially disbursed Rinsch around a sum for an unfinished science-fiction series called *White Horse*. Subsequently, the streamer provided an further $11 million after he claimed he needed extra capital to finalize the project.
However, instead of allocating the funds for the series, Rinsch diverted the capital to a private bank account. From there, he engaged in a series of unsuccessful investments, losing about 50% of the multi-million dollar sum within a few months, prosecutors said.
Lavish Spending with Studio Funds
After the failed investments, Rinsch allegedly placed the remaining funds into the cryptocurrency market, netting some profit. But, he then deposited those proceeds into his personal bank account.
What followed next involved significant high-end expenditures. Authorities outlined purchases that included:
- 5 luxury car vehicles and one Ferrari.
- Over $652,000 on designer watches and apparel.
- A pair of beds for around six hundred and thirty-eight thousand dollars.
- A further two hundred and ninety-five thousand dollars on high-end linens and household items.
Furthermore, he allegedly used some of the funds to pay off approximately $1.8 million in personal debt bills.
Court Reaction and Sentencing
In a statement, Rinsch's attorney expressed dismay with the verdict, suggesting it "establishes a concerning precedent for creatives who become embroiled in business and creative disagreements with their benefactors."
Rinsch, forty-eight, never completed the show. His court hearing is scheduled for April. The company involved declined to issue a statement on the matter.
