Hollywood Filmmaker Found Guilty of Defrauding Streaming Giant Netflix Out of Millions over Non-Existent Show
A prominent Hollywood director was convicted on Thursday for orchestrating a scheme that defrauded the entertainment platform Netflix out of a staggering sum allocated for a show that never materialized, prosecutors stated.
Details of the Case
Carl Rinsch, most famous for helming the film *47 Ronin* featuring the actor Keanu Reeves, was convicted on multiple charges including financial fraud and money laundering, according to legal documents and government attorneys in New York.
"This conviction demonstrates that if an individual steals from backers, we will trace the funds and hold them accountable," said the prosecutor.
Reported Scheme
Prosecutors alleged that Netflix had originally disbursed Rinsch approximately $44 million for an unfinished science-fiction project called *White Horse*. Later, the company provided an additional payment after he asserted he needed extra capital to complete the project.
Yet, rather than allocating the money for the series, Rinsch redirected the cash to a private bank account. There, he engaged in a series of unsuccessful stock market bets, squandering about half of the multi-million dollar sum within a few months, according to the case.
Lavish Spending with Studio Money
Following the failed investments, Rinsch reportedly placed the leftover money into the digital currency market, netting some gains. But, he then transferred those proceeds into his own bank account.
The subsequent actions involved significant high-end spending. Authorities detailed purchases that included:
- Five luxury car automobiles and a sports car.
- Over $652,000 on designer watches and clothing.
- Two custom mattresses for around $638,000.
- An additional $295,000 on high-end linens and household items.
Furthermore, he reportedly used some of the money to pay off about one point eight million dollars in personal debt balances.
Court Response and Sentencing
In a comment, Rinsch's legal counsel expressed dismay with the verdict, arguing it "could set a concerning standard for artists who become involved in business and creative disagreements with their financial backers."
Rinsch, 48, did not finish the show. His sentencing date is scheduled for this spring. The streaming platform chose not to comment on the conviction.
