A Hollywood filmmaker was found guilty last Thursday of swindling Netflix out of $11 million, money that was meant to fund a project that never saw the light of day. Instead of using the funds on production, the director drained the cash into a personal account and spent it on luxury items—including several Rolls‑Royce cars, a Ferrari, high‑end mattresses, and lavish bedding.
The man at the center of the case, Carl Erik Rinsch, who is best remembered for directing the feature “47 Ronin,” was convicted of wire fraud, money laundering, and additional offenses according to court papers and a federal prosecutor’s spokesperson in New York.
Rinsch’s lawyer, Benjamin Zeman, argued in a statement that the verdict was mistaken and could set a dangerous precedent. He warned that such a judgment might punish creative figures embroiled in contractual disputes when they face federal fraud charges from a global media powerhouse.
Prosecutors explain that Netflix had originally paid Rinsch roughly $44 million for an unfinished sci‑fi drama called “White Horse.” After he claimed he needed more money to finish the show, Netflix sent an additional $11 million. Instead of applying it to the series, Rinsch transferred the amount into a checking account where he made a string of failed investments. He reportedly lost about half of the $11 million within a few months, according to officials.
Following these losses, he poured the remaining money into the cryptocurrency market, earned a modest profit, and then deposited the proceeds back into his own bank account. Subsequently, prosecutors noted, Rinsch indulged in extravagant purchases: five Rolls‑Royce cars, one Ferrari, $652,000 worth of watches and apparel, two mattresses costing $638,000, and an extra $295,000 spent on luxury bedding. He also used some of the funds to clear roughly $1.8 million in credit‑card debt.
Rinsch, 48, never completed the “White Horse” project. His sentencing is scheduled for April.
Netflix refused to comment on the matter.
U.S. Attorney Jay Clayton stated that Rinsch “took $11 million meant for a TV show and gambled it on speculative stock options and crypto transactions.” He added that the conviction illustrates the justice system’s commitment to follow the money trail and hold people accountable for fraud against investors.
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