Hollywood Director Declared Guilty of Defrauding Platform Netflix Out of Millions over Phantom Series
A prominent Hollywood director was found guilty this week for masterminding a plot that defrauded the entertainment platform Netflix out of an astonishing $11 million earmarked for a television series that never materialized, prosecutors said.
Details of the Legal Proceedings
The director, best known for directing the film *47 Ronin* starring the actor Keanu Reeves, was convicted on multiple counts including wire fraud and concealing illicit funds, according to legal documents and government attorneys in New York.
"Today's verdict demonstrates that when someone steals from investors, we will follow the money and hold them accountable," stated the prosecutor.
Reported Fraudulent Plan
Prosecutors alleged that Netflix had initially paid Rinsch approximately a sum for an incomplete sci-fi project titled *White Horse*. Later, the company sent an further $11 million after he claimed he required extra capital to complete production.
However, rather than using the funds for the series, Rinsch diverted the cash to a personal account. There, he engaged in a series of unsuccessful stock market bets, losing about 50% of the $11 million within a couple of months, according to the case.
Extravagant Spending with Company Money
After the failed investments, Rinsch reportedly invested the remaining funds into the cryptocurrency market, making some gains. But, he then deposited those proceeds into his own account.
What followed next involved significant luxury expenditures. Authorities outlined purchases that included:
- 5 Rolls-Royce automobiles and one sports car.
- Over $652,000 on designer watches and clothing.
- Two beds for approximately six hundred and thirty-eight thousand dollars.
- An additional $295,000 on luxury bedding and household items.
Furthermore, he reportedly used a portion of the funds to settle about one point eight million dollars in personal debt balances.
Legal Response and Next Steps
In a comment, Rinsch's legal counsel voiced dismay with the outcome, suggesting it "establishes a dangerous standard for artists who become embroiled in business and artistic disputes with their benefactors."
Rinsch, 48, did not finish the television series. His sentencing date is set for April. The streaming platform declined to comment on the conviction.