He could be jailed for up to 90 years for defrauding Netflix out of US$11 million
Carl Rinsch, who made his name in Hollywood directing the 2013 film “47 Ronin”, has been convicted by a jury on wire fraud and money laundering charges in Manhattan federal court, reported The Hollywood Reporter.
The conviction followed a weeklong trial that also saw Rinsch face five counts of engaging in monetary transactions in property derived from specified unlawful activity. He could be sentenced to up to 90 years in jail.
“Today’s conviction shows that when someone steals from investors, we will follow the money and hold them accountable,” US attorney Jay Clayton said in a statement published by The Hollywood Reporter.
The charges arose after Rinsch pitched to Netflix a sci-fi series entitled “White Horse”, the premise of which involved a scientist creating a humanoid species that would turn on its makers. The director commenced work on the series in 2017, filming six short-form episodes out of his own pocket and with investments from production companies.
Former Netflix executives Cindy Holland and Peter Friedlander decided to pick up “White Horse.” According to prosecutors, Netflix made an initial investment of US$44 million and then injected another US$11 million into the project in 2020 at Rinsch’s request when the director claimed he needed the funds for pre- and postproduction projects like crew salaries and editing.
Rinsch moved the money out of his production banner to his personal brokerage account and proceeded to spend the funds on seven-figure options trades and cryptocurrency. Per the indictment, he divested about US$3.8 million into furniture and antiques – ~US$1 million of which went to mattresses and linens. He also purchased five Rolls-Royces and a Ferrari for US$2.4 million and spent US$650,000 on watches.
“White Horse” was never finished, and Netflix wrote the series off as a loss in 2020.
Rinsch’s lawyers argued that the US$11 million served as the director’s payment for the series’ partial completion; therefore, it was his to spend however he wished. The director’s attorney, Benjamin Zeman, criticized the verdict and said in a statement published by the Associated Press that it “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.”
Holland, who became Paramount’s head of streaming, and Friedlander, who is head of global TV at Amazon MGM Studios, testified at Rinsch’s trial. Netflix declined to comment on the verdict, according to AP News.
Rinsch’s sentencing date is set for April 17, 2026.
