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A well-known Hollywood director was convicted this week for masterminding a plot that swindled the entertainment platform Netflix out of an astonishing sum allocated for a show that was never produced, authorities said.

Details of the Case

Carl Rinsch, best known for helming the movie *47 Ronin* starring the actor Keanu Reeves, was found guilty on several charges including financial fraud and concealing illicit funds, according to court records and federal prosecutors in New York.

"This conviction shows that if an individual takes money from investors, we will follow the money and ensure they face consequences," stated a U.S. attorney.

The Alleged Scheme

Authorities claimed that Netflix had initially disbursed Rinsch around $44 million for an incomplete science-fiction series called *White Horse*. Later, the company sent an additional payment after he asserted he required more funding to finalize production.

However, instead of allocating the funds for the show, Rinsch diverted the cash to a personal account. From there, he engaged in a series of failed investments, squandering about 50% of the multi-million dollar sum within a couple of months, according to the case.

Extravagant Spending with Studio Money

Following the market losses, Rinsch allegedly placed the remaining funds into the digital currency market, netting some profit. But, he then deposited those funds into his personal bank account.

What followed next involved major luxury expenditures. Authorities outlined purchases that included:

• 5 Rolls-Royce automobiles and a Ferrari.
• Over six hundred and fifty-two thousand dollars on timepieces and clothing.
• Two beds for approximately $638,000.
• An additional two hundred and ninety-five thousand dollars on high-end linens and home furnishings.

In addition, he allegedly used some of the funds to settle approximately one point eight million dollars in credit card bills.

Legal Reaction and Next Steps

In a comment, Rinsch's attorney voiced disagreement with the verdict, arguing it "could set a concerning standard for artists who become embroiled in business and creative disputes with their financial backers."

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