A Hollywood filmmaker has been found guilty of defrauding Netflix of $11 million for a television series that was never produced. Instead of creating the show, Carl Erik Rinsch misused the funds on extravagant items such as multiple Rolls-Royces, a Ferrari, and approximately $1 million worth of mattresses and luxury bedding.
Known primarily for directing the movie ’47 Ronin,’ Rinsch faced charges of wire fraud and money laundering in a case brought by federal prosecutors in New York.
In his defense, Rinsch’s lawyer, Benjamin Zeman, argued that the verdict was unjust and could establish a risky precedent for artists entangled in contractual and creative disputes with their sponsors, particularly major media corporations like Netflix, leading to federal fraud indictments.
According to prosecutors, Netflix had initially paid Rinsch $44 million for an unfinished sci-fi series titled ‘White Horse,’ with an additional $11 million requested by Rinsch to complete the project. However, the money was diverted for personal use instead of the production as intended.
Rinsch made various investments but incurred significant losses, prompting him to venture into the cryptocurrency market, where he managed to make some profits. Subsequently, he splurged on five Rolls-Royces, a Ferrari, expensive watches, clothing, two high-priced mattresses, luxury bedding, and cleared substantial credit card debts using the misappropriated funds.
The television director failed to deliver the promised series, and Netflix declined to comment on the matter. Rinsch is scheduled for sentencing in April.
U.S. Attorney Jay Clayton condemned Rinsch’s actions, stating that he had recklessly gambled away the $11 million designated for the TV show on risky financial endeavors. Clayton emphasized that the conviction demonstrates the commitment to pursuing and holding accountable individuals who deceive investors.