A Hollywood filmmaker has been found guilty of defrauding Netflix of $11 million intended for a show that was never produced. Carl Erik Rinsch misappropriated the funds for extravagant purchases such as multiple Rolls-Royces, a Ferrari, and approximately $1 million on mattresses and high-end bedding.

Known for directing the movie ’47 Ronin,’ the director faced charges including wire fraud and money laundering, as reported by federal prosecutors in New York.

In response to the verdict, Rinsch’s lawyer, Benjamin Zeman, criticized the decision, expressing concerns about the implications for artists involved in contractual and creative disagreements with their sponsors, especially major media corporations like Netflix.

Prosecutors alleged that Netflix paid Rinsch $44 million for an unfinished sci-fi series titled ‘White Horse’ and provided an additional $11 million to complete the project. However, instead of using the money for the show, Rinsch diverted it for personal expenses, including investments that resulted in substantial losses.

After dabbling in the cryptocurrency market and making profits, Rinsch funneled the gains into his personal accounts to fund extravagant acquisitions. He splurged on luxury items like five Rolls-Royces, a Ferrari, high-end watches, apparel, two expensive mattresses, and luxurious linens. Additionally, he cleared approximately $1.8 million in credit card debts using the embezzled funds.

Despite the financial misconduct, the TV show remained unfinished, and Netflix refrained from commenting on the matter. Rinsch is scheduled for sentencing in April.

U.S. Attorney Jay Clayton condemned Rinsch’s actions, stating that he squandered $11 million intended for a television series on risky investments, jeopardizing investors’ funds. Clayton emphasized the government’s commitment to pursuing financial crimes and holding perpetrators accountable.