Hollywood Director Declared Guilty of Scamming Streaming Giant Netflix Out of $11 Million for Non-Existent Series
A prominent Hollywood director was convicted on Thursday for orchestrating a scheme that defrauded the streaming service Netflix out of a staggering sum earmarked for a show that never materialized, authorities said.
Details of the Legal Proceedings
The director, most famous for directing the movie *47 Ronin* starring the actor Keanu Reeves, was convicted on several counts including wire fraud and concealing illicit funds, according to legal documents and government attorneys in New York.
"Today's verdict demonstrates that if an individual steals from backers, we will trace the funds and ensure they face consequences," said a U.S. attorney.
Reported Scheme
Prosecutors alleged that Netflix had initially paid Rinsch approximately a sum for an incomplete sci-fi project titled *White Horse*. Later, the streamer sent an additional payment after he claimed he required more funding to finalize production.
However, instead of allocating the funds for the show, Rinsch redirected the cash to a private bank account. There, he made a series of unsuccessful stock market bets, squandering about half of the $11 million within a couple of months, according to the case.
Extravagant Purchases with Company Money
After the market losses, Rinsch reportedly placed the leftover money into the digital currency market, netting some gains. However, he then transferred those funds into his own bank account.
What followed next involved significant high-end spending. Prosecutors detailed purchases that included:
- 5 luxury car vehicles and a sports car.
- Over six hundred and fifty-two thousand dollars on timepieces and apparel.
- A pair of custom mattresses for around $638,000.
- An additional two hundred and ninety-five thousand dollars on high-end linens and household items.
In addition, he allegedly used a portion of the funds to pay off approximately $1.8 million in credit card bills.
Court Reaction and Sentencing
In a comment, Rinsch's legal counsel expressed dismay with the verdict, arguing it "could set a concerning standard for creatives who become involved in business and artistic disagreements with their financial backers."
Rinsch, 48, 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.
