A prominent filmmaker from Hollywood has been found guilty of defrauding Netflix out of $11 million for a project that never materialized. Carl Erik Rinsch misappropriated the funds for extravagant purchases, including multiple Rolls-Royces, a Ferrari, and approximately $1 million worth of mattresses and luxury bedding.
Known for directing the movie ’47 Ronin’, the director faced charges of wire fraud, money laundering, and other offenses, as per federal prosecutors in New York.
In response to the verdict, Rinsch’s attorney, Benjamin Zeman, argued that it could establish a troubling precedent for artists involved in contractual and creative disputes with their financial backers, particularly when facing legal action by the federal government.
Allegedly, Netflix had paid Rinsch around $44 million for an unfinished sci-fi series named ‘White Horse’. Rinsch purportedly requested an additional $11 million to complete the production, but the money was diverted for personal expenses instead of the show’s development, according to prosecutors.
After making some investments and incurring substantial losses, Rinsch ventured into the cryptocurrency market, where he managed to make some profit. Subsequently, he indulged in extravagant spending, acquiring five Rolls-Royces, a Ferrari, expensive watches, clothing, two high-end mattresses, luxury bedding, and settling credit card debts amounting to approximately $1.8 million.
Despite the financial misconduct, the project remained incomplete, and Netflix declined to comment on the situation. Rinsch is scheduled to be sentenced in April.
U.S. Attorney Jay Clayton emphasized that Rinsch diverted the $11 million intended for the TV series into risky stock options and cryptocurrency transactions, underscoring the consequences of financial malfeasance.
The conviction serves as a testament to the commitment to pursue individuals who misappropriate funds intended for investors, ensuring accountability for their actions.
