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A prominent film director was convicted on Thursday for orchestrating a scheme that defrauded the streaming service Netflix out of a staggering sum earmarked for a show that never materialized, prosecutors said.

Details of the Case

Carl Rinsch, best known for directing the film *47 Ronin* featuring Keanu Reeves, was convicted on several charges including wire fraud and concealing illicit funds, as per court records and federal prosecutors in New York.

"This conviction demonstrates that if an individual takes money from backers, we will trace the funds and ensure they face consequences," stated the prosecutor.

The Alleged Scheme

Authorities claimed that Netflix had originally paid Rinsch around $44 million for an incomplete sci-fi series titled *White Horse*. Subsequently, the company provided an additional $11 million after he claimed he needed extra capital to complete production.

However, instead of allocating the funds for the show, Rinsch redirected the cash to a personal account. From there, he made a string of failed investments, squandering about 50% of the $11 million within a few months, according to the case.

Lavish Purchases with Studio Funds

Following the market losses, Rinsch allegedly placed the leftover money into the cryptocurrency market, netting some profit. But, he then transferred those funds into his personal account.

The subsequent actions involved significant high-end spending. Authorities detailed purchases that included:

• 5 luxury car automobiles and one Ferrari.
• Over six hundred and fifty-two thousand dollars on timepieces and apparel.
• A pair of custom mattresses for approximately six hundred and thirty-eight thousand dollars.
• A further $295,000 on luxury bedding and home furnishings.

Furthermore, he reportedly used some of the money to settle about $1.8 million in personal debt bills.

Legal Response and Sentencing

In a comment, Rinsch's attorney expressed disagreement with the outcome, arguing it "could set a dangerous precedent for creatives who become embroiled in business and artistic disagreements with their financial backers."

Rinsch, 48, never completed the show. His sentencing date is scheduled for April. The streaming platform declined to issue a statement on the conviction.