A Hollywood filmmaker has been found guilty of defrauding Netflix of $11 million for a TV series that never materialized. Carl Erik Rinsch misused the funds on extravagant items like multiple Rolls-Royces, a Ferrari, and approximately $1 million worth of mattresses and high-end bedding.
Known for directing the movie ’47 Ronin,’ the director faced charges of wire fraud and money laundering in New York, as per federal prosecutors.
His lawyer, Benjamin Zeman, argued that the verdict could create a concerning precedent for artists facing contractual and creative disputes with major companies like Netflix.
Allegedly, Netflix paid Rinsch $44 million for an unfinished sci-fi show named ‘White Horse’ and was asked for an additional $11 million to complete the project.
However, instead of using the money for the show, prosecutors claim that Rinsch diverted it for personal expenses, with a significant portion lost in investments within a short period. He later entered the cryptocurrency market, making profits that he transferred to his bank account before splurging on lavish purchases.
Reportedly, Rinsch spent the misappropriated funds on five Rolls-Royces, a Ferrari, luxury watches, clothing, two expensive mattresses, high-end bedding, and settling credit card debt.
The director failed to deliver the promised show, and Netflix declined to comment on the matter. Rinsch is set to be sentenced in April.
U.S. Attorney Jay Clayton stated that Rinsch’s actions of diverting funds meant for a TV show into risky financial endeavors demonstrate the consequences of defrauding investors. The conviction highlights the commitment to holding such individuals accountable for their actions.