Film Industry Filmmaker Declared Guilty of Scamming Platform Netflix For Millions for Phantom Series
A prominent film director was convicted on Thursday for masterminding a plot that swindled the streaming service Netflix out of an astonishing $11 million allocated for a show that was never produced, authorities said.
Details of the Case
Carl Rinsch, best known for directing the film *47 Ronin* featuring the actor Keanu Reeves, was convicted on multiple counts including wire fraud and money laundering, as per court records and federal prosecutors in New York.
"This verdict demonstrates that when someone steals from backers, we will trace the funds and hold them accountable," said a U.S. attorney.
The Alleged Fraudulent Plan
Authorities claimed that Netflix had initially paid Rinsch around $44 million for an incomplete sci-fi project called *White Horse*. Subsequently, the company sent an additional payment after he claimed he needed extra capital to finalize production.
However, instead of using the money for the series, Rinsch redirected the cash to a private bank account. There, he made a series of failed stock market bets, losing roughly half of the $11 million within a couple of months, according to the case.
Extravagant Spending with Company Funds
Following the failed investments, Rinsch allegedly placed the leftover money into the cryptocurrency market, making some gains. But, he then transferred those funds into his own bank account.
The subsequent actions involved significant luxury expenditures. Prosecutors detailed acquisitions that included:
- 5 Rolls-Royce vehicles and one Ferrari.
- More than $652,000 on designer watches and apparel.
- A pair of custom mattresses for around six hundred and thirty-eight thousand dollars.
- An additional $295,000 on luxury bedding and home furnishings.
Furthermore, he allegedly used some of the funds to settle about $1.8 million in personal debt balances.
Legal Reaction and Sentencing
In a comment, Rinsch's attorney voiced dismay with the outcome, suggesting it "establishes a dangerous standard for creatives who become embroiled in contractual and artistic disagreements with their financial backers."
Rinsch, 48, never completed the television series. His court hearing is set for April. The company involved declined to comment on the conviction.