Hollywood Filmmaker Declared Guilty of Defrauding Platform Netflix For $11 Million for Phantom Show
A prominent Hollywood director was found guilty this week for masterminding a plot that defrauded the entertainment platform Netflix out of an astonishing sum allocated for a show that was never produced, prosecutors said.
Particulars of the Legal Proceedings
The director, best known for helming the film *47 Ronin* featuring the actor Keanu Reeves, was found guilty on multiple counts including financial fraud and concealing illicit funds, as per court records and government attorneys in New York.
"This verdict demonstrates that if an individual steals from investors, we will trace the funds and ensure they face consequences," stated the prosecutor.
The Alleged Scheme
Prosecutors alleged that Netflix had initially disbursed Rinsch around a sum for an unfinished sci-fi project titled *White Horse*. Later, the streamer provided an further $11 million after he asserted he required more funding to finalize production.
Yet, instead of allocating the funds for the show, Rinsch redirected the cash to a private bank account. There, he made a series of failed stock market bets, losing roughly half of the multi-million dollar sum within a couple of months, prosecutors said.
Extravagant Purchases with Company Funds
After the market losses, Rinsch allegedly placed the leftover money into the cryptocurrency market, netting some gains. But, he then transferred those proceeds into his personal account.
The subsequent actions involved major luxury spending. Authorities outlined acquisitions that included:
- Five Rolls-Royce vehicles and a sports car.
- More than $652,000 on timepieces and clothing.
- A pair of beds for approximately six hundred and thirty-eight thousand dollars.
- An additional $295,000 on high-end linens and household items.
Furthermore, he reportedly used a portion of the money to pay off approximately $1.8 million in credit card bills.
Court Reaction and Next Steps
In a comment, Rinsch's legal counsel voiced dismay with the verdict, arguing it "establishes a dangerous precedent for creatives who become involved in contractual and artistic disagreements with their financial backers."
Rinsch, forty-eight, did not finish the television series. His court hearing is scheduled for this spring. The streaming platform chose not to issue a statement on the matter.
