Director convicted of scamming $11M from Netflix and going on lavish spending spree
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FILE - Director Carl Rinsch poses for photographers during a news conference to promote his 3-D film "47 RONIN" in Tokyo, Japan, Nov. 18, 2013. Photo by Shuji Kajiyama /APArticle contentNEW YORK (AP) — A Hollywood director was convicted Thursday on charges that he scammed Netflix out of $11 million for a show that never materialized, while he instead used the cash for lavish purchases that included several Rolls-Royces, a Ferrari and about $1 million in mattresses and luxury bedding.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentCarl Erik Rinsch, best known for directing the film “47 Ronin,” was convicted of wire fraud, money laundering and other charges, according to court records and a spokesperson for federal prosecutors in New York.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentIn a statement, Rinsch’s attorney, Benjamin Zeman, said he thought the verdict was wrong 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.”Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentProsecutors said Netflix had initially paid Rinsch about $44 million for an unfinished sci-fi show called “White Horse,” and then sent over an another $11 million after he said he needed additional funding to wrap up the production.Article contentBut instead of putting the money toward the show, Rinsch steered the cash to a personal account where he made a series of failed investments, losing around half of the $11 million in a couple months, according to prosecutors.Article contentHe then put the remaining funds into the cryptocurrency market, netting some profit, though Rinsch then deposited the money into his own bank account.Article contentThen came the lavish purchases, prosecutors said, with Rinsch buying five Rolls-Royces and one Ferrari, along with $652,000 on watches and clothes. He also bought two mattresses for about $638,000 and spent another $295,000 on luxury bedding and linens. In addition, he used some of the money to pay off about $1.8 million in credit card bills, prosecutors said.Article contentRinsch never finished the show. His sentencing date is set for April.Article contentNetflix declined to comment.Article contentTrending CRA penalized taxpayer for repeated failure to report income Personal Finance Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Ford Venture's $9.6 Billion US Loan to Shrink Following Breakup PMN Business Canadian oilsands majors aim to hold spending steady as broader industry braces for tough year Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. CRA penalized taxpayer for repeated failure to report income Personal Finance Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Ford Venture's $9.6 Billion US Loan to Shrink Following Breakup PMN Business Canadian oilsands majors aim to hold spending steady as broader industry braces for tough year Oil & Gas