Film Industry Director Declared Guilty of Defrauding Platform Netflix For $11 Million for Non-Existent Show
A prominent Hollywood director was convicted on Thursday for orchestrating a scheme that defrauded the streaming service Netflix out of an astonishing $11 million allocated for a show that never materialized, prosecutors said.
Particulars of the Legal Proceedings
The director, best known for directing the film *47 Ronin* starring Keanu Reeves, was found guilty on several charges including financial fraud and concealing illicit funds, as per court records and federal prosecutors in New York.
"Today's verdict shows that when someone steals from investors, we will trace the funds and hold them accountable," stated the prosecutor.
The Alleged Fraudulent Plan
Authorities claimed that Netflix had originally disbursed Rinsch around $44 million for an unfinished sci-fi series titled *White Horse*. Later, the company sent an further $11 million after he asserted he required more funding to complete the project.
Yet, instead of using the money for the show, Rinsch diverted the cash to a personal account. From there, he engaged in a string of unsuccessful investments, losing about 50% of the multi-million dollar sum within a couple of months, according to the case.
Lavish Purchases with Company Money
Following the failed investments, Rinsch allegedly invested the remaining funds into the cryptocurrency market, netting some profit. However, he then transferred those proceeds into his own bank account.
The subsequent actions involved significant high-end expenditures. Authorities detailed acquisitions that included:
- 5 luxury car vehicles and a sports car.
- More than $652,000 on timepieces and apparel.
- Two beds for approximately $638,000.
- A further two hundred and ninety-five thousand dollars on luxury bedding and home furnishings.
Furthermore, he allegedly used a portion of the funds to settle about $1.8 million in credit card bills.
Court Response and Next Steps
In a statement, Rinsch's legal counsel voiced disagreement with the verdict, arguing it "establishes a concerning standard for creatives who become involved in business and creative disputes with their benefactors."
Rinsch, forty-eight, did not finish the television series. His court hearing is set for April. The streaming platform declined to issue a statement on the conviction.