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A prominent Hollywood director was found guilty on Thursday for orchestrating a scheme that defrauded the streaming service Netflix out of a staggering $11 million earmarked for a show that was never produced, authorities said.

Details of the Case

Carl Rinsch, best known for directing the movie *47 Ronin* featuring Keanu Reeves, was found guilty on several charges including wire fraud and concealing illicit funds, according to court records and government attorneys in New York.

"This verdict demonstrates that when someone steals from backers, we will follow the money and hold them accountable," stated the prosecutor.

Reported Scheme

Prosecutors alleged that Netflix had originally paid Rinsch approximately $44 million for an unfinished science-fiction series called *White Horse*. Later, the streamer sent an additional payment after he asserted he required more funding to complete production.

Yet, instead of using the money for the series, Rinsch redirected the capital to a private bank account. There, he made a series of failed stock market bets, losing roughly half of the $11 million within a couple of months, according to the case.

Extravagant Spending with Company Money

After the market losses, Rinsch allegedly invested the remaining funds into the digital currency market, netting some gains. However, he then transferred those proceeds into his personal account.

The subsequent actions involved major luxury expenditures. Prosecutors detailed purchases that included:

• Five Rolls-Royce automobiles and a Ferrari.
• More than $652,000 on timepieces and apparel.
• A pair of beds for around $638,000.
• A further two hundred and ninety-five thousand dollars on high-end linens and home furnishings.

In addition, he allegedly used a portion of the funds to settle about $1.8 million in credit card bills.

Court Response and Next Steps

In a statement, Rinsch's legal counsel voiced disagreement with the outcome, suggesting it "could set a concerning precedent for artists who become embroiled in business and creative disagreements with their benefactors."

Rinsch, forty-eight, did not finish the television series. His sentencing date is scheduled for this spring. The company involved declined to issue a statement on the conviction.