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A prominent film director was convicted this week for masterminding a plot that defrauded the entertainment platform Netflix out of an astonishing sum allocated for a show that never materialized, prosecutors said.

Particulars of the Case

Carl Rinsch, best known for directing the film *47 Ronin* starring Keanu Reeves, was convicted on multiple counts including financial fraud and concealing illicit funds, as per legal documents and federal prosecutors in New York.

"This conviction shows that if an individual steals from investors, we will trace the funds and ensure they face consequences," said the prosecutor.

Reported Scheme

Authorities claimed that Netflix had initially paid Rinsch approximately $44 million for an incomplete sci-fi project called *White Horse*. Later, the company sent an further $11 million after he asserted he needed extra capital to complete production.

However, rather than using the money for the show, Rinsch redirected the cash to a private bank account. From there, he made a string of unsuccessful investments, squandering about half of the $11 million within a couple of months, prosecutors said.

Lavish Spending with Company Money

After the failed investments, Rinsch reportedly placed the leftover money into the cryptocurrency market, netting some gains. But, he then deposited those proceeds into his personal bank account.

The subsequent actions involved significant luxury spending. Prosecutors outlined acquisitions that included:

• 5 luxury car automobiles and a Ferrari.
• More than $652,000 on timepieces and apparel.
• Two custom mattresses for approximately six hundred and thirty-eight thousand dollars.
• An additional $295,000 on high-end linens and household items.

In addition, he allegedly used some of the funds to settle approximately one point eight million dollars in personal debt balances.

Court Reaction and Sentencing

In a statement, Rinsch's attorney expressed dismay with the outcome, arguing it "could set a concerning precedent for artists who become involved in business and artistic disagreements with their financial backers."

Rinsch, 48, never completed the television series. His sentencing date is set for April. The streaming platform chose not to issue a statement on the matter.