Film Industry Director Declared Guilty of Scamming Streaming Giant Netflix For $11 Million for Non-Existent Show
A well-known Hollywood director was convicted this week for masterminding a plot that swindled the entertainment platform Netflix out of an astonishing $11 million earmarked for a television series that was never produced, authorities stated.
Particulars of the Legal Proceedings
The director, best known for directing the film *47 Ronin* starring Keanu Reeves, was convicted on multiple counts including wire fraud and money laundering, according to court records and government attorneys in New York.
"Today's conviction shows that when someone steals from investors, we will follow the money and ensure they face consequences," stated a U.S. attorney.
Reported Scheme
Prosecutors alleged that Netflix had originally disbursed Rinsch approximately a sum for an unfinished science-fiction series titled *White Horse*. Later, the company provided an further $11 million after he claimed he needed more funding to complete production.
However, rather than allocating the money for the show, Rinsch diverted the capital to a personal account. There, he made a string of failed investments, losing roughly 50% of the multi-million dollar sum within a couple of months, according to the case.
Extravagant Spending with Company Funds
After the failed investments, Rinsch allegedly invested the leftover money into the digital currency market, netting some profit. However, he then deposited those proceeds into his own bank account.
The subsequent actions involved major luxury spending. Authorities detailed purchases that included:
- 5 luxury car vehicles and a Ferrari.
- More than $652,000 on timepieces and apparel.
- A pair of custom mattresses for approximately $638,000.
- An additional $295,000 on high-end linens and home furnishings.
Furthermore, he reportedly used some of the money to pay off approximately $1.8 million in credit card balances.
Legal Response and Next Steps
In a comment, Rinsch's legal counsel voiced dismay with the verdict, suggesting it "establishes a dangerous standard for creatives who become embroiled in business and artistic disagreements with their benefactors."
Rinsch, 48, did not finish the show. His sentencing date is set for this spring. The company involved chose not to issue a statement on the conviction.
