Hollywood Filmmaker Found Guilty of Scamming Platform Netflix For Millions over Phantom Show
A well-known Hollywood director was convicted on Thursday for masterminding a plot that swindled the entertainment platform Netflix out of an astonishing $11 million allocated for a show that never materialized, authorities stated.
Details of the Case
The director, most famous for helming the movie *47 Ronin* starring the actor Keanu Reeves, was convicted on multiple charges including financial fraud and concealing illicit funds, as per court records and federal prosecutors in New York.
"This verdict demonstrates that if an individual takes money from backers, 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 incomplete sci-fi series called *White Horse*. Subsequently, the company provided an further payment after he claimed he needed more funding to complete the project.
However, instead of using the money for the series, Rinsch diverted the capital to a personal account. From there, he made a string of unsuccessful investments, squandering about 50% of the $11 million within a couple of months, according to the case.
Lavish Spending with Company Money
After the market losses, Rinsch allegedly invested the remaining funds into the digital currency market, netting some gains. However, he then deposited those proceeds into his own account.
What followed next involved significant luxury expenditures. Authorities detailed acquisitions that included:
- Five Rolls-Royce automobiles and a sports car.
- More than $652,000 on designer watches and apparel.
- Two beds for approximately six hundred and thirty-eight thousand dollars.
- A further two hundred and ninety-five thousand dollars on high-end linens and home furnishings.
In addition, he reportedly used some of the money to pay off about one point eight million dollars in credit card bills.
Court Reaction and Sentencing
In a statement, Rinsch's attorney expressed disagreement with the outcome, suggesting it "could set a concerning standard for creatives who become embroiled in contractual and artistic disputes with their financial backers."
Rinsch, 48, never completed the television series. His sentencing date is set for this spring. The company involved declined to issue a statement on the matter.
