Film Industry Filmmaker Declared Guilty of Defrauding Platform Netflix Out of Millions for Non-Existent Show
A prominent film director was found guilty this week for orchestrating a scheme that swindled the streaming service Netflix out of a staggering sum earmarked for a television series that was never produced, prosecutors stated.
Details of the Case
The director, best known for helming the movie *47 Ronin* starring Keanu Reeves, was convicted on several counts including financial fraud and money laundering, according to legal documents and federal prosecutors in New York.
"This conviction demonstrates that when someone takes money from investors, we will trace the funds and hold them accountable," said the prosecutor.
Reported Fraudulent Plan
Authorities claimed that Netflix had originally disbursed Rinsch approximately a sum for an unfinished science-fiction project titled *White Horse*. Later, the streamer provided an further $11 million after he asserted he required more funding to finalize the project.
Yet, rather than allocating the money for the series, Rinsch diverted the cash to a private bank account. There, he made a series of failed investments, squandering about 50% of the $11 million within a few months, prosecutors said.
Extravagant Spending with Company Money
Following the failed investments, Rinsch reportedly invested the remaining funds into the digital currency market, netting some profit. However, he then deposited those proceeds into his own bank account.
What followed next involved major luxury spending. Prosecutors detailed acquisitions that included:
- Five luxury car automobiles and a sports car.
- More than six hundred and fifty-two thousand dollars on designer watches and clothing.
- Two beds for around six hundred and thirty-eight thousand dollars.
- An additional $295,000 on luxury bedding and household items.
In addition, he reportedly used a portion of the funds to settle approximately $1.8 million in personal debt balances.
Legal Response and Sentencing
In a statement, Rinsch's legal counsel voiced disagreement with the verdict, suggesting it "establishes a concerning standard for creatives who become embroiled in contractual and creative disagreements with their financial backers."
Rinsch, forty-eight, never completed the television series. His court hearing is set for this spring. The streaming platform declined to issue a statement on the conviction.
