Hollywood Director Found Guilty of Scamming Streaming Giant Netflix Out of $11 Million over Phantom Show
A prominent film director was convicted on Thursday for orchestrating a scheme that swindled the streaming service Netflix out of a staggering sum allocated for a show that never materialized, authorities said.
Particulars of the Legal Proceedings
The director, best known for directing the movie *47 Ronin* starring the actor Keanu Reeves, was found guilty on multiple charges including wire fraud and concealing illicit funds, as per legal documents and government attorneys in New York.
"Today's verdict shows that if an individual steals from backers, we will follow the money and ensure they face consequences," stated a U.S. attorney.
The Alleged Fraudulent Plan
Authorities claimed that Netflix had initially paid Rinsch around $44 million for an incomplete sci-fi project titled *White Horse*. Later, the streamer provided an additional payment after he claimed he required extra capital to complete the project.
Yet, instead of using the money for the series, Rinsch diverted the capital to a private bank account. There, he made a string of unsuccessful investments, squandering roughly half of the multi-million dollar sum within a couple of months, prosecutors said.
Lavish Purchases with Studio Money
After the market losses, Rinsch allegedly placed the leftover money into the digital currency market, netting some gains. But, he then transferred those funds into his personal account.
The subsequent actions involved major high-end expenditures. Authorities outlined purchases that included:
- Five Rolls-Royce vehicles and one sports car.
- Over $652,000 on designer watches and clothing.
- A pair of custom mattresses for approximately $638,000.
- A further two hundred and ninety-five thousand dollars on high-end linens and household items.
In addition, he reportedly used a portion of the money to pay off approximately one point eight million dollars in personal debt bills.
Court Response and Sentencing
In a comment, Rinsch's legal counsel voiced disagreement with the verdict, arguing it "establishes a concerning precedent for creatives who become embroiled in business and artistic disputes with their benefactors."
Rinsch, forty-eight, did not finish the show. His court hearing is scheduled for this spring. The streaming platform chose not to comment on the conviction.