Film Industry Filmmaker Declared Responsible of Scamming Platform Netflix For $11 Million for Non-Existent Show
A prominent film director was found guilty this week for masterminding a plot that defrauded the streaming service Netflix out of a staggering $11 million earmarked for a show that never materialized, prosecutors said.
Particulars of the Case
Carl Rinsch, best known for helming the film *47 Ronin* featuring the actor Keanu Reeves, was convicted on several charges including wire fraud and money laundering, as per court records and government attorneys in New York.
"Today's conviction shows that when someone steals from backers, we will follow the money and hold them accountable," stated the prosecutor.
The Alleged Scheme
Authorities claimed that Netflix had initially paid Rinsch approximately $44 million for an incomplete science-fiction project called *White Horse*. Later, the streamer provided an additional $11 million after he claimed he needed more funding to complete production.
Yet, rather than using the money for the series, Rinsch diverted the capital to a personal account. From there, he made a series of unsuccessful investments, losing roughly half of the $11 million within a couple of months, according to the case.
Lavish Purchases with Studio Funds
Following the market losses, Rinsch reportedly placed the remaining funds into the cryptocurrency market, making some gains. But, he then deposited those funds into his own bank account.
What followed next involved major luxury expenditures. Authorities detailed purchases that included:
- Five luxury car automobiles and a Ferrari.
- More than six hundred and fifty-two thousand dollars on designer watches and clothing.
- A pair of custom mattresses for approximately $638,000.
- A further two hundred and ninety-five thousand dollars on high-end linens and home furnishings.
Furthermore, he reportedly used a portion of the funds to settle about $1.8 million in personal debt bills.
Legal Reaction and Sentencing
In a comment, Rinsch's legal counsel expressed dismay with the verdict, arguing it "could set a dangerous standard for artists who become embroiled in contractual and creative disputes with their benefactors."
Rinsch, forty-eight, did not finish the television series. His court hearing is set for this spring. The company involved chose not to issue a statement on the conviction.