A well-known film director was found guilty this week for masterminding a plot that swindled the streaming service Netflix out of an astonishing $11 million earmarked for a television series that never materialized, authorities said.
Particulars of the Case
The director, best known for directing the movie *47 Ronin* featuring the actor Keanu Reeves, was convicted on multiple counts including wire fraud and concealing illicit funds, as per court records and federal prosecutors in New York.
"This verdict shows that if an individual steals from backers, we will follow the money and ensure they face consequences," stated the prosecutor.
Reported Scheme
Authorities claimed that Netflix had originally disbursed Rinsch around a sum for an unfinished science-fiction project titled *White Horse*. Subsequently, the company provided an additional $11 million after he claimed he needed extra capital to finalize the project.
Yet, rather than using the money for the show, Rinsch diverted the capital to a personal account. There, he made a string of unsuccessful stock market bets, squandering roughly 50% of the $11 million within a few months, according to the case.
Extravagant Purchases with Studio Money
After the failed investments, Rinsch reportedly invested the leftover money into the cryptocurrency market, making some gains. But, he then transferred those funds into his own account.
The subsequent actions involved major luxury expenditures. Authorities outlined purchases that included:
- 5 luxury car vehicles and a Ferrari.
- More than six hundred and fifty-two thousand dollars on timepieces and apparel.
- A pair of custom mattresses for approximately $638,000.
- An additional $295,000 on luxury bedding and household items.
Furthermore, he reportedly used some of the money to settle about one point eight million dollars in credit card bills.
Legal Response and Sentencing
In a comment, Rinsch's attorney expressed disagreement with the verdict, suggesting it "could set a concerning standard for creatives who become involved in business and creative disputes with their benefactors."
Rinsch, 48, never completed the show. His sentencing date is set for April. The company involved chose not to comment on the conviction.
