Hollywood Director Declared Responsible of Defrauding Platform Netflix Out of Millions for Non-Existent Series
A well-known film director was convicted on Thursday for orchestrating a scheme that swindled the entertainment platform Netflix out of a staggering $11 million allocated for a show that was never produced, prosecutors stated.
Particulars of the Case
The director, best known for directing the film *47 Ronin* featuring the actor Keanu Reeves, was convicted on multiple counts including wire fraud and money laundering, according to court records and federal prosecutors in New York.
"This verdict shows that when someone takes money from investors, we will trace the funds and hold them accountable," stated a U.S. attorney.
Reported Fraudulent Plan
Authorities claimed that Netflix had originally disbursed Rinsch approximately a sum for an unfinished science-fiction series titled *White Horse*. Later, the streamer sent an further payment after he asserted he required more funding to finalize the project.
However, instead of using the money for the series, Rinsch diverted the capital to a private bank account. From there, he engaged in a series of failed investments, losing about half of the multi-million dollar sum within a couple of months, prosecutors said.
Lavish Spending with Studio Funds
After the failed investments, Rinsch reportedly invested the leftover money into the digital currency market, making some gains. But, he then transferred those proceeds into his own bank account.
What followed next involved significant high-end spending. Prosecutors detailed purchases that included:
- Five luxury car automobiles and one Ferrari.
- More than $652,000 on designer watches and apparel.
- A pair of beds for approximately six hundred and thirty-eight thousand dollars.
- A further two hundred and ninety-five thousand dollars on high-end linens and home furnishings.
In addition, he allegedly used some of the funds to pay off about one point eight million dollars in personal debt bills.
Legal Reaction and Sentencing
In a comment, Rinsch's legal counsel expressed disagreement with the outcome, arguing it "could set a concerning precedent for creatives who become embroiled in business and creative disputes with their benefactors."
Rinsch, forty-eight, did not finish the show. His court hearing is set for April. The streaming platform chose not to issue a statement on the matter.
