A Hollywood director has been found guilty of defrauding Netflix out of $11 million related to an unreleased show, which he used for extravagant personal expenses rather than production. Carl Erik Rinsch, who gained recognition for directing “47 Ronin,” was convicted of wire fraud, money laundering, and other charges in a New York federal court.
According to court documents and a representative for federal prosecutors, Netflix initially paid Rinsch approximately $44 million for a sci-fi series titled “White Horse.” After claiming he required additional funds to complete the show, Rinsch received another $11 million from the streaming giant. However, prosecutors assert that he diverted this money to his personal account instead of financing the production.
Rinsch reportedly lost about half of the $11 million in failed investments shortly after receiving it. He then invested some of the remaining funds in cryptocurrency, managing to yield a profit before funnelling the proceeds into his private bank account.
The lavish spending that followed included the purchase of five Rolls-Royces and a Ferrari. Rinsch splurged approximately $652,000 on watches and clothing, while also acquiring two mattresses for around $638,000 and spending another $295,000 on luxury bedding and linens. Furthermore, he used a portion of the funds to settle around $1.8 million in credit card debts.
Despite the significant sum at stake and the gravity of the charges, Rinsch’s attorney, Benjamin Zeman, criticized the verdict, claiming it sets a troubling precedent for artists involved in creative disputes with large companies.
Despite Rinsch’s conviction, Netflix chose not to comment on the case. Sentencing is scheduled for April, marking a significant moment as the entertainment industry reflects on the implications of this case and its broader impact on contractual relationships in Hollywood.
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