A Hollywood director was convicted Thursday on expenses that he scammed Netflix out of $11 million for a present that by no means materialized, whereas he as an alternative used the money for lavish purchases that included a number of Rolls-Royces, a Ferrari and about $1 million in mattresses and luxurious bedding.
Carl Erik Rinsch, greatest identified for guiding the movie “47 Ronin,” was convicted of wire fraud, cash laundering and different expenses, in response to courtroom data and a spokesperson for federal prosecutors in New York.
In a press release, Rinsch’s lawyer, Benjamin Zeman, mentioned he thought the decision was improper and “could set a dangerous precedent for artists who become embroiled in contractual and creative disputes with their benefactors, in this case one of the largest media companies in the world, finding themselves indicted by the federal government for fraud.”
Prosecutors mentioned Netflix had initially paid Rinsch about $44 million for an unfinished sci-fi present referred to as “White Horse,” and then despatched over an one other $11 million after he mentioned he wanted further funding to wrap up the manufacturing.
But as an alternative of placing the cash towards the present, Rinsch steered the money to a private account the place he made a collection of failed investments, shedding round half of the $11 million in a pair months, in response to prosecutors.
He then put the remaining funds into the cryptocurrency market, netting some revenue, although Rinsch then deposited the cash into his personal checking account.
Then got here the lavish purchases, prosecutors mentioned, with Rinsch shopping for 5 Rolls-Royces and one Ferrari, together with $652,000 on watches and garments. He additionally purchased two mattresses for about $638,000 and spent one other $295,000 on luxurious bedding and linens. In addition, he used some of the cash to repay about $1.8 million in bank card payments, prosecutors mentioned.
Rinsch by no means completed the present. His sentencing date is about for April.
Netflix declined to remark.