A prominent film director was convicted on Thursday for orchestrating a scheme that defrauded the streaming service Netflix out of an astonishing $11 million earmarked for a show that never materialized, prosecutors said.
Details of the Legal Proceedings
Carl Rinsch, best known for helming the film *47 Ronin* featuring Keanu Reeves, was found guilty on multiple charges including wire fraud and concealing illicit funds, according to legal documents and government attorneys in New York.
"Today's verdict shows that if an individual takes money from backers, we will follow the money and ensure they face consequences," said the prosecutor.
The Alleged Fraudulent Plan
Authorities claimed that Netflix had initially paid Rinsch approximately a sum for an incomplete science-fiction series called *White Horse*. Later, the streamer provided an additional payment after he claimed he needed extra capital to complete production.
However, rather than using the money for the show, Rinsch diverted the capital to a private bank account. From there, he made a series of failed investments, losing about 50% of the multi-million dollar sum within a few months, prosecutors said.
Lavish Spending with Studio Money
After the failed investments, Rinsch reportedly placed the remaining funds into the cryptocurrency market, netting some gains. But, he then transferred those proceeds into his personal bank account.
What followed next involved significant high-end spending. Authorities detailed purchases that included:
- Five Rolls-Royce vehicles and a Ferrari.
- More than $652,000 on designer watches and apparel.
- Two custom mattresses for around six hundred and thirty-eight thousand dollars.
- An additional $295,000 on luxury bedding and home furnishings.
In addition, he reportedly used a portion of the money to settle approximately $1.8 million in credit card balances.
Court Reaction and Next Steps
In a statement, Rinsch's attorney expressed dismay with the verdict, suggesting it "could set a dangerous precedent for artists who become embroiled in contractual and creative disagreements with their financial backers."
Rinsch, 48, never completed the show. His sentencing date is scheduled for this spring. The company involved chose not to issue a statement on the matter.
