Film Industry Filmmaker Found Responsible of Defrauding Streaming Giant Netflix For Millions over Non-Existent Series
A well-known Hollywood director was convicted on Thursday for masterminding a plot that defrauded the entertainment platform Netflix out of an astonishing $11 million earmarked for a television series that was never produced, authorities stated.
Particulars of the Case
The director, best known for helming the film *47 Ronin* starring Keanu Reeves, was convicted on multiple charges including wire fraud and concealing illicit funds, as per legal documents and federal prosecutors in New York.
"This conviction shows that when someone steals from backers, we will trace the funds and ensure they face consequences," stated the prosecutor.
The Alleged Fraudulent Plan
Prosecutors alleged that Netflix had initially disbursed Rinsch around a sum for an incomplete science-fiction series titled *White Horse*. Subsequently, the company provided an additional $11 million after he asserted he required extra capital to complete the project.
Yet, rather than allocating the funds for the series, Rinsch diverted the cash to a private bank account. There, he engaged in a series of unsuccessful investments, squandering about 50% of the $11 million within a couple of months, prosecutors said.
Lavish Purchases with Studio Money
After the market losses, Rinsch allegedly invested the remaining funds into the digital currency market, making some profit. But, he then transferred those funds into his personal account.
The subsequent actions involved major luxury expenditures. Authorities detailed purchases that included:
- Five Rolls-Royce automobiles and a sports car.
- More than six hundred and fifty-two thousand dollars on designer watches and apparel.
- Two beds for approximately six hundred and thirty-eight thousand dollars.
- A further $295,000 on luxury bedding and household items.
Furthermore, he allegedly used some of the money to settle about one point eight million dollars in personal debt bills.
Court Reaction and Sentencing
In a statement, Rinsch's legal counsel expressed dismay with the verdict, suggesting it "could set a concerning standard for artists who become involved in contractual and artistic disputes with their financial backers."
Rinsch, 48, did not finish the show. His court hearing is scheduled for April. The company involved chose not to issue a statement on the conviction.
