Hollywood director Carl Erik Rinsch has been sentenced to two and a half years in prison for defrauding Netflix out of $11 million. Rinsch, 48, was convicted of federal fraud and money laundering charges for misusing funds designated for the completion of a science fiction series.
US Attorney Jay Clayton stated that the sentence serves as a deterrent, emphasizing that fraud will not be tolerated. In addition to the prison time, Rinsch was ordered to serve three years of supervised release, forfeit $11 million, and pay a $700 fine.
Prosecutors alleged that Netflix provided Rinsch approximately $55 million for the unfinished sci-fi show, initially titled "White Horse." Of this amount, $11 million was given to him specifically for production completion. However, according to the prosecution, Rinsch deposited these funds into a personal account, where he invested them and lost roughly half within a few months.
During his trial in New York, Netflix executives testified that they had only agreed to a single season of the show, which Rinsch ultimately failed to deliver. Prosecutors detailed that Rinsch used the misused funds for lavish personal purchases, including luxury vehicles like Rolls Royces and expensive mattresses, spending hundreds of thousands of dollars.
Rinsch, who took the stand during his trial, a less common move for defendants, claimed the situation was a misunderstanding. He asserted that he believed the money was intended to sustain the show's production during the pandemic.
Friends and colleagues reportedly described Rinsch as increasingly erratic after signing the Netflix deal, with reports suggesting he believed he could predict natural disasters and had knowledge of a secret Covid-19 transmission mechanism. The director is best known for the 2013 film "47 Ronin."