A prominent Hollywood director was found guilty on Thursday for orchestrating a scheme that swindled the streaming service Netflix out of a staggering $11 million earmarked for a television series that was never produced, authorities said.
Details of the Case
The director, most famous for helming the movie *47 Ronin* featuring Keanu Reeves, was found guilty on multiple counts including financial fraud and concealing illicit funds, according to legal documents and federal prosecutors in New York.
"This verdict shows that when someone steals from investors, we will follow the money and hold them accountable," said a U.S. attorney.
Reported Scheme
Prosecutors alleged that Netflix had initially paid Rinsch approximately $44 million for an unfinished sci-fi series titled *White Horse*. Later, the streamer provided an additional payment after he claimed he required more funding to finalize production.
However, rather than using the money for the show, Rinsch diverted the capital to a private bank account. From there, he engaged in a series of unsuccessful investments, squandering roughly 50% of the $11 million within a couple of months, according to the case.
Extravagant Spending with Company Money
After the failed investments, Rinsch allegedly placed the remaining funds into the digital currency market, netting some gains. But, he then transferred those funds into his own bank account.
What followed next involved significant high-end expenditures. Authorities detailed acquisitions that included:
- Five luxury car vehicles and a Ferrari.
- More than six hundred and fifty-two thousand dollars on designer watches and clothing.
- Two beds for around six hundred and thirty-eight thousand dollars.
- An additional $295,000 on high-end linens and household items.
Furthermore, he allegedly used some of the funds to settle about one point eight million dollars in credit card balances.
Court Response and Sentencing
In a statement, Rinsch's legal counsel expressed dismay with the verdict, arguing it "establishes a concerning precedent for creatives who become involved in contractual and creative disagreements with their financial backers."
Rinsch, 48, never completed the television series. His court hearing is set for April. The streaming platform declined to issue a statement on the conviction.
