A well-known Hollywood director was found guilty this week for orchestrating a scheme that defrauded the streaming service Netflix out of a staggering sum allocated for a show that was never produced, prosecutors stated.
Details of the Case
Carl Rinsch, most famous for helming the film *47 Ronin* featuring the actor Keanu Reeves, was found guilty on multiple counts including wire fraud and concealing illicit funds, as per legal documents and federal prosecutors in New York.
"This verdict demonstrates that when someone takes money from investors, we will follow the money and hold them accountable," stated the prosecutor.
The Alleged Fraudulent Plan
Prosecutors alleged that Netflix had initially disbursed Rinsch approximately a sum for an incomplete science-fiction project called *White Horse*. Subsequently, the company sent an additional $11 million after he asserted he required extra capital to complete the project.
However, instead of using the money for the show, Rinsch diverted the capital to a private bank account. There, he made a series of failed stock market bets, squandering about 50% of the multi-million dollar sum within a few months, according to the case.
Extravagant Purchases with Company Funds
After the market losses, Rinsch reportedly placed the leftover money into the cryptocurrency market, netting some profit. However, he then transferred those proceeds into his own account.
What followed next involved major high-end spending. Prosecutors detailed purchases that included:
- 5 luxury car automobiles and a sports car.
- Over $652,000 on timepieces and apparel.
- Two beds for approximately $638,000.
- 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 money to settle approximately one point eight million dollars in personal debt bills.
Legal Response and Sentencing
In a comment, Rinsch's legal counsel expressed disagreement with the outcome, suggesting it "could set a dangerous standard for artists who become involved in business and creative disagreements with their benefactors."
Rinsch, 48, never completed the show. His court hearing is scheduled for April. The company involved chose not to issue a statement on the conviction.
