Hollywood Director Convicted of Defrauding Netflix
NEW YORK (AP) – A Hollywood director was found guilty on Thursday for defrauding Netflix out of $11 million intended for shows that never came to life. Instead of using the funds as planned, he purchased several Rolls-Royces, a Ferrari, and nearly $1 million on various luxury items, including mattresses and high-end bedding.
Karl-Eric Rinsch, recognized for his work on the film “47 Ronin,” has been found guilty of wire fraud, money laundering, and other related charges, as per court documents and a spokesperson for the New York federal prosecutor.
Benjamin Zeman, Rinsch’s attorney, expressed that the verdict was erroneous and could set a troubling precedent for artists caught in contractual disagreements with their financial backers, particularly in cases involving major media companies that could face federal fraud allegations.
According to prosecutors, Netflix initially paid Rinsch around $44 million to produce the incomplete sci-fi series “White Horse.” However, they later transferred over $11 million more after Rinsch claimed he required additional funds to finish the production.
Instead of directing the funds towards the show, prosecutors assert that Rinsch funneled the money into a personal account, resulting in a series of unsuccessful investments that drained about half of the $11 million within months.
He then moved the remaining money into the cryptocurrency market, where he made some profits but ultimately deposited those into his own bank account.
Prosecutors indicated that Rinsch subsequently acquired five Rolls-Royces, a Ferrari, and spent $652,000 on designer watches and clothing. He also reportedly purchased two mattresses for around $638,000 and invested an additional $295,000 on premium bedding and linens. Some of the funds were even used to pay off approximately $1.8 million in credit card debt.
At 48 years old, Rinsch failed to complete the show, with sentencing scheduled for April.
Netflix opted not to comment on the situation.
U.S. Attorney Jay Clayton remarked that Rinsch “accepted $11 million for a television show and gambled it on speculative stock options and cryptocurrency transactions,” emphasizing that the conviction illustrates a commitment to tracking stolen funds and holding individuals accountable.
