A noted filmmaker from Hollywood has been found guilty of defrauding Netflix of $11 million intended for a project that was never completed. Instead of using the funds for the show, Carl Erik Rinsch indulged in extravagant purchases such as multiple Rolls-Royces, a Ferrari, as well as approximately $1 million on mattresses and luxury bedding.
Rinsch, known for directing the movie ’47 Ronin,’ faced charges of wire fraud and money laundering in a case brought by federal prosecutors in New York. His lawyer, Benjamin Zeman, contested the verdict, expressing concerns about the implications it could have for artists entangled in contractual disputes with their sponsors, especially major media corporations like Netflix.
According to prosecutors, Netflix had initially paid Rinsch around $44 million for a science fiction series titled ‘White Horse,’ which remained unfinished. Subsequently, Rinsch requested an additional $11 million to complete the project, but instead of using the money for the show, he diverted it for personal expenses, including investments that resulted in significant losses within a short period.
Following these losses, Rinsch turned to the cryptocurrency market, where he made some profits that were then transferred to his personal account. With this money, he proceeded to make extravagant purchases, including acquiring five Rolls-Royces, a Ferrari, spending $652,000 on watches and apparel, purchasing two mattresses for approximately $638,000, and splurging another $295,000 on luxury bedding and linens. Additionally, he used part of the funds to settle credit card debts amounting to about $1.8 million.
Despite the substantial spending spree, Rinsch failed to complete the television series as agreed. Netflix declined to provide any comments on the matter. Rinsch is scheduled to be sentenced in April.
U.S. Attorney Jay Clayton remarked that Rinsch had misappropriated the $11 million intended for the TV show by engaging in risky stock and cryptocurrency investments. The conviction serves as a warning that individuals who deceive investors will be pursued and held responsible for their actions.