Hollywood Director Found Responsible of Scamming Streaming Giant Netflix Out of Millions over Phantom Show
A well-known Hollywood director was found guilty on Thursday for masterminding a plot that swindled the entertainment platform Netflix out of an astonishing sum allocated for a television series that never materialized, prosecutors said.
Details of the Legal Proceedings
Carl Rinsch, most famous for helming the film *47 Ronin* starring the actor Keanu Reeves, was convicted on multiple charges including financial fraud and money laundering, according to court records and government attorneys in New York.
"Today's conviction demonstrates that when someone takes money from backers, we will trace the funds and hold them accountable," stated the prosecutor.
Reported Scheme
Prosecutors alleged that Netflix had originally disbursed Rinsch approximately $44 million for an incomplete science-fiction series titled *White Horse*. Later, the streamer provided an additional $11 million after he claimed he needed extra capital to finalize production.
However, rather than allocating the money for the series, Rinsch diverted the cash to a private bank 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 Company Money
Following the failed investments, Rinsch allegedly invested the remaining funds into the cryptocurrency market, netting some gains. But, he then deposited those proceeds into his personal bank account.
The subsequent actions involved major high-end expenditures. Authorities outlined acquisitions that included:
- Five Rolls-Royce automobiles and one sports car.
- Over six hundred and fifty-two thousand dollars on timepieces and apparel.
- A pair of beds for around six hundred and thirty-eight thousand dollars.
- An additional $295,000 on high-end linens and home furnishings.
Furthermore, he allegedly used a portion of the money to pay off approximately $1.8 million in credit card bills.
Court Reaction and Next Steps
In a comment, Rinsch's legal counsel voiced dismay with the outcome, suggesting it "establishes a dangerous precedent for artists who become embroiled in contractual and artistic disagreements with their financial backers."
Rinsch, forty-eight, did not finish the show. His court hearing is scheduled for this spring. The streaming platform declined to issue a statement on the matter.
