Film Industry Director Declared Guilty of Scamming Streaming Giant Netflix For $11 Million for Non-Existent Series
A well-known film director was convicted on Thursday for orchestrating a scheme that swindled the streaming service Netflix out of a staggering sum allocated for a television series that was never produced, prosecutors stated.
Particulars of the Legal Proceedings
The director, most famous for helming the movie *47 Ronin* featuring 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 verdict demonstrates that if an individual takes money from backers, we will follow the money and hold them accountable," stated a U.S. attorney.
The Alleged Scheme
Prosecutors alleged that Netflix had initially disbursed Rinsch around $44 million for an incomplete science-fiction project titled *White Horse*. Subsequently, the company sent an further payment after he asserted he required extra capital to complete production.
However, rather than using the money for the show, Rinsch redirected the cash to a personal account. From there, he made a series of unsuccessful investments, squandering about half of the $11 million within a couple of months, prosecutors said.
Lavish Spending with Company Money
After the failed investments, Rinsch reportedly placed the remaining funds into the cryptocurrency market, netting some gains. However, he then transferred those funds into his personal account.
What followed next involved major luxury spending. Authorities outlined purchases that included:
- 5 luxury car vehicles and one sports car.
- Over six hundred and fifty-two thousand dollars on timepieces and apparel.
- Two beds for around $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 money to pay off about $1.8 million in personal debt bills.
Legal Response and Next Steps
In a comment, Rinsch's attorney voiced disagreement with the verdict, arguing it "could set a dangerous standard for artists who become involved in business and artistic disputes with their financial backers."
Rinsch, forty-eight, never completed the television series. His sentencing date is set for April. The streaming platform chose not to comment on the conviction.