Hollywood Filmmaker Found Guilty of Defrauding Platform Netflix For $11 Million for Phantom Show
A well-known Hollywood director was convicted this week for orchestrating a scheme that swindled the streaming service Netflix out of a staggering sum earmarked for a television series that never materialized, authorities stated.
Details of the Case
The director, most famous for helming the movie *47 Ronin* featuring the actor Keanu Reeves, was found guilty on multiple counts including financial fraud and concealing illicit funds, according to legal documents and government attorneys in New York.
"Today's conviction shows that if an individual takes money from backers, we will follow the money and ensure they face consequences," stated a U.S. attorney.
Reported Scheme
Authorities claimed that Netflix had initially paid Rinsch approximately a sum for an incomplete sci-fi project called *White Horse*. Later, the company provided an additional payment after he claimed he required more funding to complete production.
Yet, rather than using the funds for the show, Rinsch redirected the cash to a private bank account. From there, he engaged in a string of failed investments, squandering roughly 50% of the $11 million within a few months, prosecutors said.
Lavish Spending with Company Money
After the market losses, Rinsch reportedly placed the leftover money into the cryptocurrency market, netting some profit. However, he then deposited those funds into his personal bank account.
The subsequent actions involved significant luxury spending. Authorities detailed purchases that included:
- 5 Rolls-Royce automobiles and one sports car.
- More than six hundred and fifty-two thousand dollars on designer watches and apparel.
- A pair of beds for around $638,000.
- A further two hundred and ninety-five thousand dollars on high-end linens and home furnishings.
In addition, he reportedly used a portion of the money to settle approximately one point eight million dollars in personal debt balances.
Legal Response and Sentencing
In a comment, Rinsch's legal counsel voiced disagreement with the verdict, suggesting it "could set a concerning standard for creatives who become embroiled in business and creative disputes with their financial backers."
Rinsch, forty-eight, did not finish the show. His sentencing date is set for April. The streaming platform declined to issue a statement on the matter.
