A prominent Hollywood director, Carl Erik Rinsch, was found guilty on Thursday of defrauding Netflix of $11 million for a TV show that was never produced. Instead of using the funds for the intended project, Rinsch indulged in extravagant spending, purchasing luxury items such as Rolls-Royces, a Ferrari, and around $1 million worth of mattresses and high-end bedding.
Rinsch, known for his work on “47 Ronin,” was convicted of wire fraud and money laundering, among other charges. Prosecutors revealed that Netflix had initially paid him $44 million for an unfinished sci-fi series titled “White Horse,” and then provided an additional $11 million for production expenses.
However, instead of using the money for the show, Rinsch diverted it to his personal account, where he made risky investments that resulted in significant losses. He then turned to the cryptocurrency market, generating some profit before transferring the remaining funds to his bank account.
John Sciulli via Getty Images
His extravagant purchases included multiple luxury vehicles and expensive watches, as well as a substantial amount spent on bedding and linens. In addition, Rinsch used a portion of the misappropriated funds to settle credit card debts totaling $1.8 million.
Despite the financial windfall, Rinsch failed to deliver the promised TV show. He is scheduled for sentencing in April, while Netflix has refrained from commenting on the matter.
U.S. Attorney Jay Clayton condemned Rinsch’s actions, stating that he “misused $11 million intended for a television project on risky investments.” The conviction serves as a warning that fraudulent activities will be investigated and prosecuted to safeguard investors’ interests.
