Hollywood Director Convicted of Scamming Netflix Out of $11 Million
A Hollywood director, Carl Erik Rinsch, has been convicted of scamming Netflix out of $11 million for a show that never materialized. Rinsch, best known for directing the film “47 Ronin,” was found guilty of wire fraud, money laundering, and other charges, according to court records and a spokesperson for federal prosecutors in New York.
Prosecutors alleged that Netflix had initially paid Rinsch around $44 million for an unfinished sci-fi show called “White Horse.” However, Rinsch requested and received an additional $11 million, claiming he needed the funds to complete the production. Instead of using the money for the show, Rinsch diverted the funds to a personal account, where he made a series of failed investments, losing approximately half of the $11 million in just a few months.
Lavish Spending Spree
Rinsch then used the remaining funds to finance a lavish spending spree, purchasing five Rolls-Royces, one Ferrari, and spending $652,000 on watches and clothes. He also bought two mattresses for around $638,000 and spent an additional $295,000 on luxury bedding and linens. Furthermore, Rinsch used some of the money to pay off approximately $1.8 million in credit card bills. Despite receiving the funds, Rinsch never completed the show.
Rinsch’s attorney, Benjamin Zeman, expressed disagreement with the verdict, stating that it “could set a dangerous precedent for artists who become embroiled in contractual and creative disputes with their benefactors.” However, U.S. Attorney Jay Clayton emphasized that Rinsch “took $11 million meant for a TV show and gambled it on speculative stock options and crypto transactions.” Clayton added that the conviction demonstrates that “when someone steals from investors, we will follow the money and hold them accountable.”
Conclusion and Sentencing
Rinsch’s sentencing date is set for April. Netflix declined to comment on the matter. The case highlights the importance of accountability and transparency in financial transactions, particularly in the entertainment industry. As the entertainment industry continues to evolve, it is essential for creators and producers to maintain integrity and responsibility in their financial dealings.
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