Hollywood Filmmaker Declared Responsible of Scamming Streaming Giant Netflix Out of Millions for Non-Existent Show
A prominent film director was convicted this week for orchestrating a scheme that swindled the streaming service Netflix out of a staggering $11 million allocated for a television series that was never produced, prosecutors said.
Details of the Legal Proceedings
The director, most famous for helming the film *47 Ronin* starring the actor Keanu Reeves, was convicted on several counts including financial fraud and money laundering, according to legal documents and government attorneys in New York.
"Today's verdict demonstrates that when someone takes money from backers, we will follow the money and hold them accountable," said a U.S. attorney.
Reported Scheme
Prosecutors alleged that Netflix had originally paid Rinsch approximately a sum for an incomplete sci-fi project called *White Horse*. Subsequently, the company sent an further $11 million after he asserted he needed extra capital to complete the project.
Yet, rather than using the funds for the series, Rinsch diverted the capital to a private bank account. From there, he made a series of unsuccessful stock market bets, losing roughly half of the multi-million dollar sum within a few months, according to the case.
Lavish Spending with Studio Money
After the market losses, Rinsch allegedly placed the remaining funds into the digital currency market, netting some gains. But, he then transferred those proceeds into his personal bank account.
The subsequent actions involved significant high-end spending. Prosecutors outlined acquisitions that included:
- Five Rolls-Royce vehicles and one Ferrari.
- More than six hundred and fifty-two thousand dollars on timepieces and clothing.
- Two custom mattresses for approximately $638,000.
- An additional $295,000 on high-end linens and home furnishings.
In addition, he reportedly used a portion of the funds to settle approximately one point eight million dollars in personal debt bills.
Legal Reaction and Next Steps
In a statement, Rinsch's attorney voiced disagreement with the outcome, suggesting it "could set a concerning standard for creatives who become embroiled in business and creative disputes with their benefactors."
Rinsch, 48, never completed the show. His court hearing is set for this spring. The company involved declined to comment on the conviction.
