Hollywood Filmmaker Found Guilty of Defrauding Streaming Giant Netflix Out of Millions for Non-Existent Show
A well-known Hollywood director was convicted on Thursday for masterminding a plot that defrauded the streaming service Netflix out of a staggering sum earmarked for a show that never materialized, prosecutors said.
Details of the Case
The director, most famous for helming the film *47 Ronin* starring the actor Keanu Reeves, was convicted on multiple counts including financial fraud and concealing illicit funds, according to court records and federal prosecutors in New York.
"Today's conviction demonstrates that if an individual takes money from investors, we will follow the money and ensure they face consequences," said a U.S. attorney.
Reported Scheme
Authorities claimed that Netflix had initially paid Rinsch approximately $44 million for an unfinished science-fiction series titled *White Horse*. Later, the streamer sent an further payment after he claimed he needed more funding to complete production.
Yet, instead of allocating the funds for the show, Rinsch diverted the cash to a private bank account. From there, he engaged in a string of unsuccessful stock market bets, squandering roughly half of the $11 million within a couple of months, according to the case.
Extravagant Spending with Studio Funds
After the market losses, Rinsch allegedly placed the leftover money into the cryptocurrency market, making some profit. However, he then deposited those funds into his personal bank account.
What followed next involved significant high-end spending. Prosecutors detailed purchases that included:
- 5 Rolls-Royce vehicles and a sports car.
- Over $652,000 on timepieces and apparel.
- A pair of custom mattresses for around six hundred and thirty-eight thousand dollars.
- An additional two hundred and ninety-five thousand dollars on high-end linens and household items.
In addition, he reportedly used a portion of the funds to pay off approximately $1.8 million in credit card balances.
Legal Response and Sentencing
In a comment, Rinsch's legal counsel voiced dismay with the verdict, suggesting it "could set a dangerous standard for artists who become involved in business and creative disagreements with their financial backers."
Rinsch, forty-eight, did not finish the show. His court hearing is set for April. The company involved chose not to comment on the matter.