Film Industry Director Found Guilty of Scamming Streaming Giant Netflix Out of $11 Million over Non-Existent Series
A well-known film director was convicted on Thursday for orchestrating a scheme that defrauded the entertainment platform Netflix out of an astonishing sum allocated for a show that never materialized, authorities said.
Particulars of the Case
The director, best known for helming the film *47 Ronin* featuring Keanu Reeves, was convicted on several charges including financial fraud and concealing illicit funds, according to court records and government attorneys in New York.
"Today's conviction shows that when someone takes money from backers, we will follow the money and ensure they face consequences," stated the prosecutor.
Reported Fraudulent Plan
Authorities claimed that Netflix had originally disbursed Rinsch around $44 million for an unfinished sci-fi series titled *White Horse*. Subsequently, the streamer provided an additional $11 million after he claimed he needed extra capital to finalize the project.
However, rather than allocating the money for the series, Rinsch redirected the capital to a private bank account. There, he made a string of unsuccessful investments, losing roughly half of the $11 million within a few months, prosecutors said.
Lavish Spending with Studio Money
After the market losses, Rinsch allegedly invested the leftover money into the digital currency market, netting some gains. But, he then deposited those proceeds into his personal account.
The subsequent actions involved major high-end expenditures. Authorities detailed purchases that included:
- Five Rolls-Royce vehicles and a sports car.
- Over $652,000 on designer watches and clothing.
- Two beds for around six hundred and thirty-eight thousand dollars.
- An additional two hundred and ninety-five thousand dollars on luxury bedding and household items.
Furthermore, he reportedly used some of the money to settle about one point eight million dollars in credit card bills.
Legal Reaction and Next Steps
In a statement, Rinsch's legal counsel expressed dismay with the verdict, arguing it "establishes a dangerous precedent for artists who become embroiled in business and artistic disagreements with their benefactors."
Rinsch, forty-eight, did not finish the show. His sentencing date is set for April. The company involved declined to issue a statement on the matter.
