Hollywood Director Declared Responsible of Scamming Platform Netflix For $11 Million for Non-Existent Series
A well-known film director was found guilty on Thursday for masterminding a plot that defrauded the streaming service Netflix out of a staggering $11 million earmarked for a television series that never materialized, prosecutors said.
Particulars of the Legal Proceedings
The director, best known for helming the film *47 Ronin* featuring the actor Keanu Reeves, was convicted on multiple charges including financial fraud and concealing illicit funds, according to court records and federal prosecutors in New York.
"Today's verdict shows that if an individual takes money from backers, we will trace the funds and ensure they face consequences," stated a U.S. attorney.
The Alleged Fraudulent Plan
Prosecutors alleged that Netflix had initially disbursed Rinsch approximately a sum for an incomplete science-fiction project called *White Horse*. Later, the streamer sent an additional $11 million after he asserted he needed more funding to finalize the project.
However, rather than using the money for the series, Rinsch diverted the capital to a personal account. From there, he engaged in a series of failed stock market bets, squandering roughly 50% of the $11 million within a few months, according to the case.
Lavish Spending with Studio Money
Following the market losses, Rinsch reportedly placed the remaining funds into the digital currency market, netting some gains. But, he then transferred those proceeds into his own bank account.
The subsequent actions involved significant high-end spending. Prosecutors outlined purchases that included:
- 5 Rolls-Royce vehicles and one sports car.
- More than six hundred and fifty-two thousand dollars on designer watches and clothing.
- A pair of custom mattresses for around $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 funds to pay off approximately $1.8 million in credit card balances.
Legal Reaction and Next Steps
In a comment, Rinsch's attorney expressed disagreement with the outcome, arguing it "establishes a dangerous precedent for artists who become involved in contractual and artistic disputes with their financial backers."
Rinsch, forty-eight, never completed the show. His sentencing date is set for this spring. The streaming platform chose not to issue a statement on the conviction.
