Hollywood Filmmaker Declared Responsible of Scamming Platform Netflix For Millions over Phantom Show
A well-known film director was convicted this week for orchestrating a scheme that defrauded the streaming service Netflix out of a staggering $11 million earmarked for a television series that was never produced, authorities stated.
Details of the Case
The director, most famous for directing the film *47 Ronin* featuring Keanu Reeves, was found guilty on several counts including financial fraud and money laundering, according to legal documents and government attorneys in New York.
"This conviction demonstrates that when someone steals from investors, we will follow the money and ensure they face consequences," said a U.S. attorney.
The Alleged Fraudulent Plan
Prosecutors alleged that Netflix had initially paid Rinsch around a sum for an incomplete sci-fi project called *White Horse*. Later, the company provided an further $11 million after he claimed he required extra capital to complete production.
However, rather than allocating the money for the series, Rinsch diverted the cash to a private bank account. From there, he made a series of failed investments, squandering about 50% of the $11 million within a couple of months, prosecutors said.
Lavish Purchases with Studio Money
Following the failed investments, Rinsch allegedly placed the remaining funds into the cryptocurrency market, making some profit. But, he then transferred those proceeds into his own bank account.
What followed next involved significant high-end spending. Prosecutors detailed acquisitions that included:
- 5 luxury car automobiles and one Ferrari.
- Over $652,000 on designer watches and clothing.
- A pair of custom mattresses for around $638,000.
- An additional two hundred and ninety-five thousand dollars on high-end linens and home furnishings.
In addition, he allegedly used some of the money to pay off approximately one point eight million dollars in personal debt balances.
Legal Response and Next Steps
In a comment, Rinsch's legal counsel expressed dismay with the verdict, suggesting it "could set a dangerous precedent for creatives who become embroiled in business and artistic disputes with their financial backers."
Rinsch, forty-eight, never completed the show. His sentencing date is scheduled for this spring. The company involved chose not to comment on the matter.
