A Hollywood filmmaker has been found guilty of defrauding Netflix of $11 million intended for a show that was never produced. Instead of using the funds for the project, Carl Erik Rinsch spent the money on extravagant items such as multiple Rolls-Royces, a Ferrari, and approximately $1 million worth of mattresses and luxury bedding.
Known primarily for directing ’47 Ronin,’ Rinsch faced charges including wire fraud and money laundering, as confirmed by federal prosecutors in New York.
In response to the verdict, Rinsch’s attorney, Benjamin Zeman, expressed disagreement, suggesting that the outcome could establish a concerning precedent for artists entangled in contractual and creative disagreements with their sponsors, particularly major media corporations like Netflix, potentially leading to federal fraud indictments.
According to prosecutors, Netflix had already paid Rinsch around $44 million for an unfinished sci-fi series named ‘White Horse’ and was requested an additional $11 million to complete production.
However, the additional investment did not contribute to the show’s development, as alleged by prosecutors. Instead, Rinsch indulged in personal spending, making a number of investments that resulted in significant losses within a short period.
After dabbling in the cryptocurrency market and generating some profit, Rinsch deposited the earnings into his personal bank account, subsequently embarking on a spree of extravagant purchases. These purchases included five Rolls-Royces, a Ferrari, watches and clothing worth $652,000, two mattresses totaling about $638,000, luxury bedding and linens costing $295,000, and settling approximately $1.8 million in credit card debts.
The 48-year-old filmmaker failed to deliver the completed show as promised, and Netflix declined to offer a comment on the matter. Rinsch is scheduled for sentencing in April.
U.S. Attorney Jay Clayton condemned Rinsch’s actions, asserting that he diverted the $11 million, intended for a television series, to high-risk stock options and cryptocurrency ventures. Clayton emphasized the significance of holding individuals accountable for defrauding investors, ensuring that justice is served in such cases.