A Hollywood director found himself at the center of a legal storm on Thursday after being convicted of defrauding Netflix of a staggering $16.5 million, equivalent to $11 million USD. The funds, intended for a show that was never produced, were instead used by the director to indulge in a series of extravagant purchases.

Among the luxury items acquired with the ill-gotten money were several Rolls-Royces, a Ferrari, and an astonishing $1.5 million, or $1 million USD, spent on high-end mattresses and bedding. These revelations paint a vivid picture of the lavish lifestyle funded by the scheme.

Carl Erik Rinsch, widely recognized for his work directing the film “47 Ronin,” was found guilty of wire fraud, money laundering, and a slew of other charges. This conviction was confirmed by court documents and statements from a spokesperson for federal prosecutors based in New York.

Reacting to the verdict, Rinsch’s attorney, Benjamin Zeman, expressed his disapproval, suggesting that the decision could have far-reaching consequences. He warned, “This case could set a dangerous precedent for artists who find themselves in contractual and creative disputes with their financial backers.”

Zeman further criticized the proceedings, pointing out the unusual circumstances of a major media conglomerate being at the center of a federal fraud indictment. The case underscores the complexities and potential pitfalls of the entertainment industry’s financial dealings.

Prosecutors said Netflix had initially paid Rinsch about $66 million ($USD 44 million) for an unfinished sci-fi show called “White Horse,” and then sent over another $16.5 million ($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 $16.5 million ($USD 11 million) in a couple of 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 $979,700 ($USD 652,000) on watches and clothes. He also bought two mattresses for about $958,600 ($USD 638,000) and spent another $443,200 ($USD 295,000) on luxury bedding and linens. In addition, he used some of the money to pay off about $2.7 million ($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.