A Hollywood director has been found guilty of defrauding Netflix out of a staggering $11 million for a project that never came to fruition. Carl Erik Rinsch, recognized for his work on the film “47 Ronin,” faces significant charges, including wire fraud and money laundering, as revealed by court records and federal prosecutors in New York.
The case centered on a sci-fi series titled “White Horse,” for which Netflix had initially paid Rinsch $44 million. After requesting additional funding, the streaming giant disbursed another $11 million to help finalize the production. However, instead of applying the funds to the show, Rinsch diverted the money to a personal account, resulting in a series of unsuccessful investments that saw him lose about half of the amount in just a few months.
Subsequent to those losses, Rinsch chose to invest the remaining funds into cryptocurrency, which yielded some profits. Nonetheless, he ultimately funneled these profits back into his own bank account. Prosecutors highlighted Rinsch’s extravagant spending habits, with purchases including five Rolls-Royces, a Ferrari, and a staggering $652,000 on luxury watches and clothing. He also reportedly invested about $638,000 in two mattresses along with an additional $295,000 for luxury bedding and linens, and utilized part of the funds to cover approximately $1.8 million in credit card debts.
Despite the allegations against him, Rinsch’s attorney, Benjamin Zeman, has expressed disappointment with the verdict, arguing that it could create a troubling precedent for artists facing complexities in contractual and creative challenges, particularly when dealing with major corporations.
Rinsch, now 48, faces sentencing in April and did not complete the production of the show for which he received the investment funds. U.S. Attorney Jay Clayton emphasized that Rinsch’s actions illustrate a commitment to accountability when it comes to investor protection. He stated, “Today’s conviction shows that when someone steals from investors, we will follow the money and hold them accountable.”
This case sheds light on the darker side of Hollywood’s financial dealings while reinforcing the importance of ethical responsibility among those in creative fields.
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