Director convicted of scamming USD 11 million from Netflix going on lavish spending spree

    New York, Dec 12 (AP) A Hollywood director was convicted Thursday on charges that he scammed Netflix out of USD 11 million for a show that never materialised, while he instead used the cash for lavish purchases that included several Rolls-Royces, a Ferrari and about USD 1 million in mattresses and luxury bedding.
    Carl 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.
    In 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."
    Prosecutors said Netflix had initially paid Rinsch about USD 44 million for an unfinished sci-fi show called "White Horse," and then sent over an another USD 11 million after he said he needed additional funding to wrap up the production.
    But 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 USD 11 million in a couple months, according to prosecutors.
    He then put the remaining funds into the cryptocurrency market, netting some profit, though Rinsch then deposited the money into his own bank account.
    Then came the lavish purchases, prosecutors said, with Rinsch buying five Rolls-Royces and one Ferrari, along with USD 6,52,000 on watches and clothes. He also bought two mattresses for about USD 6,38,000 and spent another USD 2,95,000 on luxury bedding and linens. In addition, he used some of the money to pay off about USD 1.8 million in credit card bills, prosecutors said.
    Rinsch never finished the show. His sentencing date is set for April.
    Netflix declined to comment. (AP) RUK
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(This story has not been edited by THE WEEK and is auto-generated from PTI)