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A Hollywood The director was convicted on Thursday on scam charges Netflix Of the $11 million for a show that never came to fruition, he instead used the cash for lavish purchases that included several Rolls-Royces, a ferrari and nearly $1 million in mattresses and luxury bedding.
Carl Eric Reinsch, best known for directing the film “47 Ronin,” was convicted of wire fraud, money laundering and other charges, according to court records and a spokeswoman for federal prosecutors. new york,
In a statement, Reinsch’s attorney, Benjamin Zeman, said he thought the ruling was wrong and “could set a dangerous precedent for artists who become embroiled in contractual and creative disputes with their beneficiaries, in which case one of the world’s largest media companies finds itself convicted of fraud by the federal government.”
Prosecutors said Netflix initially paid Reinsch about $44 million for an unfinished sci-fi show called “White Horse” and then sent another $11 million when he said he needed additional money to complete production.
But according to prosecutors, instead of investing the money in the show, Reinsch funneled the cash into a personal account, where he made a series of failed investments, losing nearly half of the $11 million in a few months.
He then put the remaining funds into the cryptocurrency market, making some profit, although Reinsch then deposited the money into his own bank account.
Then lavish shopping sprees followed, prosecutors said, in which Reinsch bought five Rolls-Royces and a Ferrari, as well as spending $652,000 on watches and clothing. He also purchased two mattresses for approximately $638,000 and spent $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.
Rinsch never finished the show. His sentencing date has been set for April.
Netflix declined to comment.