Film Industry Filmmaker Found Responsible of Scamming Platform Netflix For $11 Million for Phantom Series
A well-known film director was convicted on Thursday for orchestrating a scheme that defrauded the entertainment platform Netflix out of a staggering sum earmarked for a television series that never materialized, authorities stated.
Particulars of the Legal Proceedings
The director, most famous for directing the movie *47 Ronin* featuring the actor Keanu Reeves, was convicted on several counts including wire fraud and concealing illicit funds, according to court records and government attorneys in New York.
"Today's conviction demonstrates that when someone takes money from backers, we will follow the money and hold them accountable," stated a U.S. attorney.
The Alleged Scheme
Authorities claimed that Netflix had originally disbursed Rinsch around $44 million for an incomplete sci-fi project called *White Horse*. Subsequently, the streamer sent an additional $11 million after he claimed he needed extra capital to finalize the project.
Yet, rather than using the funds for the series, Rinsch diverted the capital to a private bank account. There, he made a series of failed investments, squandering about half of the multi-million dollar sum within a couple of months, prosecutors said.
Lavish Spending with Studio Money
Following the market losses, Rinsch allegedly invested the leftover money into the digital currency market, netting some gains. But, he then deposited those proceeds into his personal account.
The subsequent actions involved significant high-end spending. Prosecutors detailed purchases that included:
- 5 luxury car vehicles and one sports car.
- More than six hundred and fifty-two thousand dollars on designer watches and apparel.
- A pair of custom mattresses for approximately six hundred and thirty-eight thousand dollars.
- An additional two hundred and ninety-five thousand dollars on high-end linens and household items.
In addition, he reportedly used some of the money to pay off approximately one point eight million dollars in credit card balances.
Legal Reaction and Next Steps
In a comment, Rinsch's legal counsel voiced disagreement with the verdict, suggesting it "could set a dangerous precedent for creatives who become embroiled in business and artistic disagreements with their benefactors."
Rinsch, forty-eight, never completed the television series. His sentencing date is scheduled for April. The company involved chose not to issue a statement on the matter.
