A well-known film director was found guilty on Thursday for masterminding a plot that defrauded the entertainment platform Netflix out of a staggering $11 million earmarked for a show that never materialized, authorities stated.
Particulars of the Legal Proceedings
The director, best known for directing the film *47 Ronin* featuring the actor Keanu Reeves, was convicted on multiple charges including financial fraud and concealing illicit funds, as per legal documents and federal prosecutors in New York.
"This conviction shows that when someone takes money from investors, we will follow the money and hold them accountable," said the prosecutor.
The Alleged Scheme
Prosecutors alleged that Netflix had initially disbursed Rinsch around a sum for an incomplete sci-fi series called *White Horse*. Subsequently, the streamer provided an additional $11 million after he claimed he needed more funding to finalize production.
However, rather than using the money for the show, Rinsch redirected the capital to a private bank account. There, he made a string of unsuccessful stock market bets, losing about half of the multi-million dollar sum within a couple of months, prosecutors said.
Extravagant Spending with Studio Money
Following the market losses, Rinsch allegedly invested the remaining funds into the digital currency market, netting some profit. But, he then deposited those funds into his own bank account.
What followed next involved major luxury spending. Authorities outlined acquisitions that included:
- Five Rolls-Royce vehicles and one Ferrari.
- Over six hundred and fifty-two thousand dollars on timepieces and clothing.
- A pair of custom mattresses for around $638,000.
- A further $295,000 on high-end linens and household items.
In addition, he allegedly used a portion of the funds to pay off approximately $1.8 million in credit card balances.
Legal Reaction and Next Steps
In a statement, Rinsch's attorney voiced dismay with the verdict, suggesting it "could set a concerning standard for artists who become embroiled in business and artistic disputes with their benefactors."
Rinsch, 48, never completed the television series. His sentencing date is set for April. The streaming platform chose not to comment on the matter.
