Hollywood writer-director Carl Rinsch was sentenced Monday to 2 1/2 years in prison for defrauding Netflix out of $11 million for a science fiction series that was never finished.
Rinsch, known for the 2013 film “47 Ronin,” was convicted in December of federal wire fraud and other charges. Prosecutors stated that Rinsch told Netflix he needed $11 million to complete a show titled “White Horse” but instead diverted the funds into a personal account. He subsequently spent large sums on luxury vehicles, watches, clothing, and household items, including over $638,000 on two mattresses, according to trial testimony.
At the sentencing hearing, Rinsch, 48, and his defense team argued that his actions were influenced by mental health struggles and medication issues, which he is currently addressing. "This process has forced me to confront things about my health, my judgment and my life," Rinsch told the court, apologizing for his behavior and acknowledging that "real harm was caused."
Prosecutors sought a five-year prison sentence, arguing that Rinsch, who also owes approximately $11 million in restitution, was motivated by "naked greed" despite having significant advantages, including family wealth, an elite education, and a high-profile career.
Netflix initially paid Rinsch about $44 million for “White Horse” in 2018 and 2019. In 2020, the company provided an additional $11 million after he claimed he needed more funds to conclude production. Instead of using the money for the show, Rinsch transferred it to a personal account. Prosecutors stated that he lost about half of that $11 million through failed investments within a couple of months, then put the remaining funds into the cryptocurrency market, eventually depositing profits into his own bank account.
His lavish purchases included five Rolls-Royces, a red Ferrari, $652,000 worth of watches and clothing, and another $295,000 on luxury bedding and linens. He also used approximately $1.8 million to pay off credit card debt.
U.S. District Judge Jed S. Rakoff acknowledged that Rinsch's mental health difficulties might explain some of the excessive spending but stated they did not negate the court's finding that Rinsch was determined to lie to obtain substantial funds from Netflix and then lie to cover it up.
Rinsch is scheduled to report to prison in September. His legal team has indicated plans to appeal the case. Netflix declined to comment on the sentencing.