Carl Erik Rinsch, the Hollywood director behind “47 Ronin,” was convicted Thursday by a federal jury in New York of defrauding Netflix out of $11 million.
Prosecutors said the money was intended to help complete a science fiction series called “White Horse,” but Rinsch instead diverted the funds for personal expenses and risky investments.
According to prosecutors, Netflix had already paid him about $44 million for the unfinished project. When Rinsch requested an additional $11 million to finish production, the company released the funds.
However, investigators said he moved that money to a personal account, where he quickly lost nearly half to failed investments before turning to cryptocurrencies. He made some profits there, but then transferred the profits to his own bank account.
Prosecutors told the court that Rinsch then spent the money on luxury purchases, including several Rolls-Royces, a Ferrari, expensive watches and clothes.
According to prosecutors, Rinsch also purchased two mattresses for about $638,000 and added nearly $300,000 in high-end bedding, while using some of the funds to pay off about $1.8 million in credit card debt.
Meanwhile, the show was never completed.
In a statement, Rinsch’s attorney, Benjamin Zeman, said he thought the verdict was wrong and “could set a dangerous precedent for artists who find themselves embroiled in contractual and creative disputes with their benefactors, in this case one of the world’s largest media companies, and find themselves accused by the federal government of fraud.”
According to CNN, Rinsch is scheduled to be sentenced in April, while Netflix declined to comment.
(CNN)
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