The Justice Department has officially charged Carl Erik Rinsch, the director of 47 Ronin, for defrauding a major video streaming service out of $11 million. Rinsch struck a deal with the service, believed to be Netflix, to produce a sci-fi series that he never delivered on. The indictment, filed by prosecutors in the Southern District of New York, alleges that Rinsch misused the funds intended for the show by engaging in risky securities trades and using profits to sue Netflix for more money.
Rinsch faces charges of wire fraud, money laundering, and other related offenses, which could result in a maximum prison sentence of 90 years if convicted. Acting United States Attorney Matthew Podolsky stated that Rinsch orchestrated a scheme to deceive the streaming service into investing in a television show that he never created, instead using the funds for personal expenses and speculative investments like cryptocurrency trading.
Although Netflix was not directly named in the indictment, it was hinted at as the defrauded company, with references to a project called White Horse that was acquired by Netflix. Rinsch allegedly used his own funds and investments from production companies to pitch the show to studios, eventually receiving an additional $11 million from Netflix in 2020 for production costs. However, prosecutors claim that Rinsch diverted the funds to his personal brokerage account, incurred significant losses in risky trades, and used the remaining money for personal luxuries.
Despite receiving additional funds from Netflix, Rinsch failed to complete the series and instead sued the company for more money. An arbitrator ruled in favor of Netflix, ordering Rinsch to pay back nearly $9 million. This case highlights the consequences of fraudulent activities in the entertainment industry and the importance of financial transparency and accountability.
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