Hollywood Filmmaker Found Responsible of Defrauding Platform Netflix For $11 Million over Phantom Series
A prominent film director was found guilty this week for masterminding a plot that swindled the entertainment platform Netflix out of an astonishing sum 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 several charges including financial fraud and concealing illicit funds, as per legal documents and federal prosecutors in New York.
"This conviction demonstrates that if an individual takes money from investors, we will follow the money and ensure they face consequences," stated the prosecutor.
The Alleged Fraudulent Plan
Authorities claimed that Netflix had initially paid Rinsch approximately a sum for an unfinished science-fiction project called *White Horse*. Later, the streamer provided an further payment after he claimed he required more funding to complete the project.
However, instead of using the money for the series, Rinsch redirected the cash to a personal account. There, he made a series of failed stock market bets, squandering roughly half of the multi-million dollar sum within a few months, prosecutors said.
Extravagant Spending with Studio Funds
After the market losses, Rinsch reportedly invested the leftover money into the digital currency market, netting some profit. But, he then deposited those funds into his own bank account.
What followed next involved significant luxury expenditures. Authorities outlined purchases that included:
- 5 Rolls-Royce vehicles and a sports car.
- Over $652,000 on timepieces and clothing.
- A pair of beds for approximately $638,000.
- An additional $295,000 on luxury bedding and home furnishings.
In addition, he reportedly used some of the funds to settle about $1.8 million in personal debt bills.
Court Response and Sentencing
In a statement, Rinsch's attorney voiced disagreement with the verdict, arguing it "establishes a concerning standard for creatives who become involved in contractual and artistic disputes with their benefactors."
Rinsch, forty-eight, did not finish the show. His sentencing date is scheduled for this spring. The streaming platform declined to issue a statement on the conviction.
