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Hollywood director charged with defrauding $11m from Netflix

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A Hollywood director has been arrested and accused of using studio funds intended to complete a sci-fi series to buy luxury cars, cryptocurrency and fancy bedding for himself.

Carl Erik Rinsch, 47, is charged with federal fraud and money laundering related to $11m (£8.5m) he was given by Netflix to create a series called White Horse.

Mr Rinsch, who is best known for the 2013 film 47 Ronin, declined to enter a plea when appearing in a Los Angeles court on Tuesday.

The indictment does not name Netflix, referring to a “subscription video on-demand streaming service”, but Mr Rinsch’s long-running dispute with Netflix over the failed series has been previously publicised in US media reports.

Netflix has declined to comment on his arrest.

Between 2018 to 2019, the streaming giant gave Mr Rinsch an initial budget of $44m to film the show, which depicts artificial human clones, but he allegedly never completed a single episode.

In March 2020, Netflix sent him another $11m after he argued that the initial budget was “not sufficient”, according to prosecutors.

But instead of using the funds for the series, he allegedly transferred them to his personal bank accounts and used it to invest in several risky financial ventures, the US Justice Department said.

“Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating,” prosecutor Matthew Podolsky said in a statement on Tuesday.

“But that was fiction.”

Only two months after receiving the $11m, about half of it had already been spent, the indictment says.

While he “was in the process of losing” the money, Mr Rinsch allegedly informed Netflix that the show was “awesome and moving forward really well”, according to the indictment.

He allegedly used the remaining funds to speculate on cryptocurrency, and on personal expenses and luxury items for himself, including a fleet of Rolls-Royces and a Ferrari, court documents state.

The spending spree also included $1.8m for credit card bills, $3.7m on furniture and antiques and $933,000 on mattresses and luxury bedding, the Justice Department states.

The indictment also alleges that $1m of the cash was sent to lawyers to sue Netflix in hopes of receiving more funds, and for a divorce.

A profile of the dispute published by the New York Times in 2023 reported that friends and colleagues had described Mr Rinsch of growing increasingly erratic shortly after he signed the Netflix deal.

The newspaper reports that he believed he could predict lightning strikes and volcanic eruptions and knew about a “secret transmission mechanism” for Covid-19.

According to the Associated Press, Mr Rinsch made an initial court appearance on Tuesday. When asked by the judge whether he had read the 12-page indictment, he reportedly responded, “Not cover to cover”.

He was released on a $100,000 bail, and he is expected to attend trial in New York at a later date. If found guilty, he faces 20 years in prison.

(BBC News)

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Dua Lipa confirms engagement to Callum Turner

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Dua Lipa has confirmed that she’s engaged to actor Callum Turner, saying it’s “a really special feeling”.

The singer, 29, has been with 35-year-old Londoner Turner for almost a year and a half.

He’s best known for roles in Fantastic Beasts and Masters of the Air, and was Bafta nominated in 2020 for BBC One’s The Capture.

“Yeah, we’re engaged,” she told British Vogue. “It’s very exciting. This decision to grow old together, to see a life and just, I don’t know, be best friends forever – it’s a really special feeling.”

The couple sparked engagement rumours last Christmas when she posted pictures of herself wearing a ring.

She told Vogue that Turner had the ring made for her after consulting with her best friends and sister.

“It’s so me. It’s nice to know the person that you’re going to spend the rest of your life with knows you very well.”

They have not yet set a wedding date, with Lipa saying she must first finish her current world tour – which ends in Mexico in December – and Turner is busy filming.

He is due to play the lead in the Apple TV sci-fi series Neuromancer, adapted from William Gibson’s 1984 novel.

“We’re just enjoying this period,” she said. “I’ve never been someone who’s really thought about a wedding, or dreamt about what kind of bride I would be. All of a sudden I’m like, ‘Oh, what would I wear?'”

(BBC News)

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Disney and Universal sue AI firm Midjourney over images

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Disney and Universal are suing artificial intelligence (AI) firm Midjourney over its image generator, which the Hollywood giants allege is a “bottomless pit of plagiarism”.

The two studios claim Midjourney’s tool makes “innumerable” copies of characters including Darth Vader from Star Wars, Frozen’s Elsa, and the Minions from Despicable Me.

It is part of the entertainment industry’s ongoing love-hate relationship with AI. Many studios want to make use of the technology but are concerned that their creations could be stolen.

Midjourney’s image generator makes images from typed requests or prompts.

In the lawsuit filed in federal district court in Los Angeles, the studios gave examples of Midjourney-generated images that included Disney characters such as Star Wars’ Yoda and Marvel’s Spiderman, the Incredible Hulk and Iron Man.

Disney’s chief legal officer Horacio Gutierrez said the firm was “optimistic” about how AI “can be used responsibly as a tool to further human creativity”.

“But piracy is piracy, and the fact that it’s done by an AI company does not make it any less infringing,” he said.

In the complaint, Disney and Universal said Midjourney made $300m (£221m) last year alone and is planning a “soon-to-be-released video service”.

Syracuse University law professor Shubha Ghosh said: “A lot of the images that Midjourney produces just seem to be copies of copyright characters that might be in new locations or with a new background.”

“It doesn’t seem like they’re being transformed in a creative or imaginative way.”

He added that there is a recognition in copyright law that creativity can build on other works as long as it adds something new.

Randy McCarthy, head of the IP Law Group at US law firm Hall Estill said: “No litigation is ever a slam dunk, and that is true for Disney and Universal in this case.”

“There are several issues such as terms of service provisions by Midjourney, and basic fair use analysis, that will need to be sorted out by the court before we can determine the likely outcome,” he added.

Midjourney did not immediately respond to a BBC request for comment.

On its website, the San Francisco-based startup says it has a “small self-funded team” with less than a dozen full-time staffers.

It refers to itself as “an independent research lab.”

The firm is run by David Holz, who previously founded a hardware sensor firm called Leap Motion.

Midjourney lists former Github chief executive Nat Friedman and Philip Rosedale, founder of Second Life, among its advisors.

Hollywood sees both potential upsides and downsides to AI.

It was only two years ago that actors and writers shut down the entertainment industry hub with strikes demanding protections against new technology.

But now AI is being used more in TV, films and video games.

Two movies competing at the Oscars used AI to alter voices: Emilia Perez and The Brutalist.

The technology has also been used to de-age actors like Tom Hanks and Harrison Ford.

(BBC News)

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Two BTS stars finish military service

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Two members of K-pop powerhouse BTS have completed their mandatory military service, prompting fan frenzy and anticipation for their comeback.

RM and V greeted fans with salutes and a saxophone performance after being discharged on Tuesday. V asked fans to “wait just a little longer” for BTS to reunite.

All seven members are set to finish their military service by the end of this month and their agency Hybe had hinted at a reunion. They went on hiatus in 2022 at the height of their global fame.

Hundreds of fans, some whom flew in from overseas, gathered in front of Hybe’s headquarters in central Seoul to celebrate RM’s and V’s return on Tuesday.

Many of them were dressed in purple, BTS’ signature colour, and carried large banners and photographs of the two K-pop idols.

South Korea requires all able-bodied men aged 18 to 28 to serve for about two years in the military so the country can be ready to fight the North.

On Tuesday, Hybe displayed a banner saying “We are back”, along with the official logos of BTS and ARMY – an acronym for the band’s fan group, which stands for Adorable Representative MC for Youth – on its building.

“This feels incredible. To be here in Seoul, to see the place where BTS grew up and started singing and dancing. It’s amazing,” Janya, who flew in from the UK, told The Korea Herald.

“I want to say to RM and V that you are a massive inspiration, and I love you so much!” the 28-year-old said.

“It’s been a long, long time without you. I’m so glad you’re back and finally free to do whatever you want to do,” said Ivory from Australia.

Hannah Chung, who lives in London, told AFP news agency that she planned her trip two years ago “because I knew the members will be out by then”.

She is counting on a chance to see the band at the annual BTS Festa, a celebration of the band’s debut, that will take place on Friday.

Earlier during their discharge in Chuncheon, RM thanked fans for waiting for them to complete their national duties.

“Now, I’m ready to hit the ground running again as RM of BTS. Thank you to everyone who waited and looked after us,” he said.

V said the military tenure was a “time for me to reset both physically and mentally”.

“I really want to run to ARMY as soon as I can. Thank you for waiting for us during our military service,” he said.

The septet debuted in 2013, but it wasn’t until 2017 when a highly successful US tour propelled their blend of pop, hip-hop and R&B – mostly in Korean – onto the global stage.

Since then, they have become the most-streamed group on Spotify, the first K-pop act to top the US iTunes chart and several Billboard charts, and one of the most awarded groups in history.

The band’s name is short for Bangtan Boys, or “Bulletproof Boy Scouts” in Korean.

BTS has actively advocated for youth issues, including through a mental health initiative with Unicef.

It has also addressed the United Nations General Assembly and met with former US President Joe Biden to discuss the rise in anti-Asian hate crimes.

The band had previously won a deferral – when in 2020, the nation’s parliament passed a bill allowing them to delay their duties until the age of 30.

In 2022, the oldest member of the group, Jin, enlisted, and the others followed suit.

(BBC News)

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