Hollywood filmmaker Carl Erik Rinsch jailed for $11m Netflix fraud

Hollywood filmmaker Carl Erik Rinsch has been sentenced to two and a half years in prison after being convicted of defrauding Netflix out of $11 million that had been allocated to complete an unfinished science fiction series.

Rinsch, 48, best known for directing “47 Ronin”, was found guilty of federal fraud and money laundering after prosecutors proved he diverted production funds to personal investments and luxury purchases instead of completing the project.

In addition to the prison sentence, Judge Jay Rakoff ordered three years of supervised release, forfeiture of $11 million, and a $700 fine.
 

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Before sentencing, Rinsch apologised in court and accepted responsibility for his actions. US Attorney Jay Clayton said the sentence should serve as a warning that financial fraud would not be tolerated.

According to prosecutors, Netflix had committed around $55 million to the science fiction series, then titled “White Horse”, including an additional $11 million that Rinsch claimed was needed to finish production.

Instead of using the money for the project, he allegedly transferred it to a personal bank account, where he invested much of it. Prosecutors said he quickly lost nearly half of the funds before shifting to cryptocurrency investments and spending millions on luxury items, including Rolls-Royce cars and high-end furniture.
 

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During the week-long trial in New York, Netflix executives testified that the streaming platform had commissioned only one season of the series, which Rinsch never delivered.

Rinsch testified in his own defence, arguing that the funds were intended to sustain the production through the Covid-19 pandemic and that the dispute stemmed from a misunderstanding.

The case also drew attention to Rinsch's reported behaviour during the period. According to The New York Times, friends and colleagues said he became increasingly erratic after signing the Netflix deal, claiming he could predict lightning strikes and volcanic eruptions and possessed knowledge of a secret Covid-19 transmission mechanism.