A prominent film director was convicted this week for masterminding a plot that defrauded the streaming service Netflix out of an astonishing $11 million allocated for a television series that was never produced, authorities stated.
Particulars of the Case
Carl Rinsch, most famous for helming the film *47 Ronin* featuring Keanu Reeves, was found guilty on several charges including wire fraud and concealing illicit funds, as per court records and federal prosecutors in New York.
"Today's conviction shows that when someone takes money from investors, we will trace the funds and ensure they face consequences," said the prosecutor.
The Alleged Fraudulent Plan
Prosecutors alleged that Netflix had initially disbursed Rinsch approximately $44 million for an incomplete sci-fi project called *White Horse*. Subsequently, the company sent an additional payment after he claimed he required more funding to finalize the project.
Yet, instead of allocating the money for the show, Rinsch redirected the cash to a personal account. From there, he made a string of unsuccessful investments, losing about half of the multi-million dollar sum within a few months, according to the case.
Lavish Purchases with Company Money
Following the failed investments, Rinsch reportedly placed the remaining funds into the cryptocurrency market, making some profit. But, he then transferred those funds into his personal account.
What followed next involved significant high-end spending. Prosecutors detailed acquisitions that included:
- Five luxury car vehicles and one sports car.
- More than $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.
Furthermore, he reportedly used a portion of the money to pay off about one point eight million dollars in personal debt bills.
Legal Response and Sentencing
In a comment, Rinsch's attorney voiced disagreement with the verdict, arguing it "establishes a concerning standard for artists who become involved in contractual and artistic disputes with their financial backers."
Rinsch, forty-eight, never completed the television series. His court hearing is set for this spring. The company involved declined to issue a statement on the conviction.
