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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 $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.
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 $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 $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.
Rinsch, 48, never finished the show. His sentencing date is set
for April.
Netflix declined to comment.
U.S. Attorney Jay Clayton, in a statement, said Rinsch “took $11
million meant for a TV show and gambled it on speculative stock
options and crypto transactions.”
“Today’s conviction shows that when someone steals from
investors, we will follow the money and hold them accountable,"
Clayton said.
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