Hollywood Filmmaker Declared Responsible of Scamming Platform Netflix Out of $11 Million over Phantom Show
A prominent film director was convicted this week for masterminding a plot that swindled the entertainment platform Netflix out of a staggering $11 million allocated for a show that never materialized, authorities said.
Details of the Legal Proceedings
Carl Rinsch, best known for directing the movie *47 Ronin* featuring the actor Keanu Reeves, was convicted on several counts including wire fraud and money laundering, as per legal documents and government attorneys in New York.
"This conviction demonstrates that when someone takes money from investors, we will follow the money and ensure they face consequences," stated the prosecutor.
Reported Scheme
Authorities claimed that Netflix had initially disbursed Rinsch approximately $44 million for an incomplete science-fiction project titled *White Horse*. Later, the streamer provided an further $11 million after he claimed he needed extra capital to complete the project.
Yet, instead of allocating the money for the series, Rinsch diverted the capital to a personal account. There, he made a string of unsuccessful investments, losing roughly half of the $11 million within a few months, prosecutors said.
Lavish Spending with Company Money
Following the market losses, Rinsch allegedly invested the remaining funds into the cryptocurrency market, making some profit. But, he then transferred those funds into his own account.
What followed next involved significant luxury expenditures. Prosecutors detailed purchases that included:
- Five luxury car automobiles and one Ferrari.
- Over six hundred and fifty-two thousand dollars on designer watches and clothing.
- A pair of beds for approximately six hundred and thirty-eight thousand dollars.
- An additional two hundred and ninety-five thousand dollars on luxury bedding and home furnishings.
Furthermore, he reportedly used a portion of the money to pay off approximately $1.8 million in personal debt balances.
Legal Reaction and Next Steps
In a statement, Rinsch's legal counsel voiced disagreement with the outcome, arguing it "establishes a concerning standard for creatives who become embroiled in business and artistic disputes with their benefactors."
Rinsch, 48, never completed the show. His sentencing date is set for this spring. The streaming platform declined to comment on the conviction.
