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A well-known Hollywood director was convicted this week for orchestrating a scheme that swindled the entertainment platform Netflix out of a staggering $11 million earmarked for a television series that never materialized, prosecutors said.

Particulars of the Case

The director, most famous for directing the movie *47 Ronin* featuring the actor Keanu Reeves, was convicted on multiple counts including wire fraud and money laundering, according to legal documents and government attorneys in New York.

"Today's conviction shows that when someone takes money from backers, we will trace the funds and ensure they face consequences," stated the prosecutor.

Reported Scheme

Authorities claimed that Netflix had originally disbursed Rinsch around a sum for an incomplete sci-fi project titled *White Horse*. Later, the company sent an further payment after he asserted he needed more funding to finalize the project.

Yet, rather than allocating the funds for the series, Rinsch diverted the capital to a private bank account. From there, he engaged in a string of failed investments, losing about 50% of the $11 million within a couple of months, prosecutors said.

Lavish Spending with Company Funds

Following the failed investments, Rinsch reportedly placed the leftover money into the cryptocurrency market, making some profit. However, he then deposited those proceeds into his personal bank account.

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

• 5 Rolls-Royce vehicles and one sports car.
• Over six hundred and fifty-two thousand dollars on timepieces and clothing.
• A pair of custom mattresses for approximately $638,000.
• A further two hundred and ninety-five thousand dollars on luxury bedding and household items.

Furthermore, he reportedly used some of the money to pay off about $1.8 million in credit card balances.

Court Reaction and Sentencing

In a statement, Rinsch's legal counsel expressed dismay with the verdict, arguing it "establishes a dangerous precedent for artists who become embroiled in contractual and artistic disagreements with their financial backers."

Rinsch, 48, never completed the television series. His court hearing is scheduled for April. The streaming platform declined to comment on the matter.