Carl Erik Rinsch, the director of action fantasy 47 Ronin, was found guilty of defrauding Netflix of $11 million through an agreement to create a science fiction series that he never produced. He will receive his sentence on April 17, 2026.
According to The Hollywood Reporter, following a one-week trial in Manhattan, the United States Attorney for the Southern District of New York said on Thursday that he was convicted of “one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and five counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum sentence of 10 years in prison.”
Rinsch used the earnings from his risky securities trading with money intended for a White Horse series to sue Netflix for additional money to complete the show and buy luxury items. He was found guilty by a jury in a federal court in Manhattan of wire fraud, money laundering, and several other charges pertaining to participating in illicit financial activities.
Rinsch is anticipated to receive a huge prison sentence. The maximum sentence for him was ninety years.
Carl Erik Rinsch's fraud explained
According to the indictment, Rinsch started filming White Horse about 2017. The film centres on a scientist who creates a human-like animal that turns against its creators. Using his own cash and investments from other production companies, he finished six of the series' short-form episodes before pitching studios for funding to complete the first season.
At Rinsch's request, Netflix gave him an extra $11 million in 2020 to finish the series. It was intended to be used for a variety of pre- and post-production tasks, such as paying crew and editing previously captured video.
Rather, Rinsch moved the funds from his production banner to his personal brokerage account. He lost over half of the money on seven-figure options transactions in less than two months, and then he spent the rest on cryptocurrencies.
After turning a profit, Rinsch went on to spend $10 million. According to the indictment, he spent around $3.8 million on antiques and furniture, including $650,000 on watches, $2.4 million on five Rolls-Royces and a Ferrari, and about $1 million on two beds and linens.
Former Netflix executives who made the decision to buy White Horse, such as Cindy Holland, now head of streaming at Paramount, and Peter Friedlander, now head of global TV at Amazon MGM Studios, testified throughout the trial. A trailer for the series, which Friedlander once referred to as "visionary," was shown to the jury.
Rinsch's attorneys argued throughout the trial that since the $11 million Netflix sent him was payment for completing a portion of the series, the director was allowed to utilize it anyway he chose. Instead of presenting the issue as a criminal case, they tried to present it as a civil contract dispute.
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