Director convicted of scamming Netflix out of $11…
A Hollywood director was convicted Thursday on fees that he scammed Netflix out of $11 million for a show that never materialized, while he instead used the money for lavish purchases that included a number of Rolls-Royces, a Ferrari and about $1 million in mattresses and luxurious bedding.
Carl Erik Rinsch, best identified for directing the movie “47 Ronin,” was convicted of wire fraud, money laundering and other fees, according to court data and a spokesperson for federal prosecutors in New York.
In a assertion, Rinsch’s attorney, Benjamin Zeman, said he thought the verdict was flawed and “could set a dangerous precedent for artists who become embroiled in contractual and creative disputes with their benefactors, in this case one of the largest media companies in the world, finding themselves indicted by the federal government for fraud.”
Rinsch was convicted of wire fraud, money laundering and other fees. John Sciulli
Prosecutors said Netflix had initially paid Rinsch about $44 million for an unfinished sci-fi show called “White Horse,” and then despatched over an another $11 million after he said he needed further funding to wrap up the manufacturing.
But instead of placing the money toward the show, Rinsch steered the money to a personal account where he made a sequence of failed investments, dropping around half of the $11 million in a couple months, according to prosecutors.
Prosecutors said that Rinsch misplaced around half of the $11 million in a couple months. AFP via Getty Images
He then put the remaining funds into the cryptocurrency market, netting some revenue, though Rinsch then deposited the money into his own bank account.
Then got here the lavish purchases, prosecutors said, with Rinsch shopping for 5 Rolls-Royces and one Ferrari, along with $652,000 on watches and garments. He also purchased two mattresses for about $638,000 and spent another $295,000 on luxurious bedding and linens. In addition, he used some of the money to repay about $1.8 million in credit card payments, prosecutors said.
Rinsch, 48, never completed the show. His sentencing date is set for April.
Prosecutors said Netflix had initially paid Rinsch about $44 million for an unfinished sci-fi show called “White Horse,” and then despatched over an another $11 million after he said he needed further funding to wrap up the manufacturing. Universal/Courtesy Everett Collection
Netflix declined to remark.
U.S. Attorney Jay Clayton, in a assertion, said Rinsch “took $11 million meant for a TV show and gambled it on speculative stock options and crypto transactions.”
“Today’s conviction shows that when someone steals from investors, we will follow the money and hold them accountable,” Clayton said.
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