Director stands trial for allegedly scamming Netflix out of $11M
What's the story
Carl Rinsch, the director of 47 Ronin, is facing a federal trial for allegedly defrauding Netflix. The trial commenced on Tuesday (US time) with prosecutors alleging that Rinsch used $11 million from the streaming giant for personal purchases. These included a $7,40,000 Ferrari and a $3,40,000 watch. The funds were reportedly funneled through various bank accounts before landing in his personal brokerage account. The project in question was White Horse, Netflix's next big bet in the sci-fi domain.
Defense strategy
Rinsch's defense team argues he got caught in contract dispute
Rinsch's defense team, led by attorney Michael Arthus, argued that the director is an artist caught in a contract dispute, not a criminal. They claimed Rinsch valued his story more than worrying about production costs. Arthus also blamed "executive group think" and the pandemic for derailing the project. He likened Rinsch to Vincent van Gogh and said he couldn't deliver, but that doesn't make him a fraud.
Key testimonies
Netflix executives to testify against Rinsch in fraud trial
Several Netflix executives, including Cindy Holland and Peter Friedlander, are expected to testify against Rinsch. Friedlander was the first witness to take the stand and testified about the initial pitch for White Horse. He described it as a "visionary" project with Cronenberg-esque body horror and finished visual effects. However, production issues arose in late 2019, leading Netflix to send an additional $11 million to Rinsch in March 2020.
Fraud allegations
Rinsch allegedly deceived Netflix employees to secure funds
Prosecutors claim that Rinsch deceived multiple Netflix employees to secure the $11 million. They argued that he "saw an opportunity to make a killing" in the stock market at the start of the pandemic and "deceived" several employees. The filmmaker was arrested in March this year. The trial is expected to wrap up by next week, with jurors hearing testimonies from witnesses including Rinsch's financial manager, personal assistant, bookkeeper, and editor.