Hollywood director convicted of scamming Netflix out of $11M
What's the story
Carl Erik Rinsch, the director of 47 Ronin, has been found guilty of wire fraud and money laundering. The charges stem from allegations that he defrauded Netflix out of $11 million for a show that never materialized. Instead of using the funds for production, Rinsch diverted them to personal accounts and made extravagant purchases, including five Rolls-Royces, a Ferrari, and luxury bedding worth around $1 million.
Legal perspective
Rinsch's attorney criticized the verdict
Benjamin Zeman, Rinsch's attorney, has expressed disagreement with the verdict. He said it could "set a dangerous precedent for artists who become embroiled in contractual and creative disputes with their benefactors, in this case one of the largest media companies in the world, finding themselves indicted by the federal government for fraud."
Financial details
Rinsch's financial mismanagement and extravagant spending
Prosecutors revealed that Netflix initially paid Rinsch around $44 million for an unfinished sci-fi show named White Horse. He later requested an additional $11 million for production completion. However, instead of using the funds for the show, Rinsch transferred them to a personal account where he made several unsuccessful investments, reportedly losing half of the money within months.
Further actions
Rinsch's cryptocurrency investments and credit card payments
Following the failed investments, Rinsch invested the remaining funds in cryptocurrency. Although he made some profit from this venture, he eventually transferred the money to his personal bank account. He also used part of the stolen money to pay off approximately $1.8 million in credit card bills. Despite these financial maneuvers, Rinsch never completed the show for which he had originally received funding. His sentencing is scheduled for April 2026.