Carl Rinsch Convicted of Defrauding Netflix
In a high-profile case, Carl Rinsch, the director of “47 Ronin,” has been convicted of defrauding Netflix out of $11 million. The verdict was delivered by a jury that deliberated for less than five hours after a two-week trial. Rinsch was found guilty on seven charges, including wire fraud, money laundering, and illegal money transmission.
Carl Rinsch’s Fraud Case Overview
The U.S. Attorney’s Office for the Southern District of New York brought the charges against Rinsch in connection with a Netflix series originally titled “White Horse.” The project, later renamed “Conquest,” was pitched to studios for additional funding after Rinsch began filming in 2017.
Financial Mismanagement of Funds
Netflix initially invested $44 million into the series. In 2020, Rinsch requested an additional $11 million from Netflix to complete the project. However, instead of using the funds appropriately, Rinsch transferred the money to his personal brokerage account. He reportedly lost half of it through risky trading options before turning to cryptocurrency investments, which led to a spending spree.
- $3.8 million on furniture and antiques
- $1 million on luxury mattresses and linens
- $2.4 million on five Rolls-Royces and a Ferrari
- $650,000 on watches
Trial and Sentencing
During the trial, the defense argued that the $11 million was not specifically designated and that Rinsch believed he could use the funds as needed. Despite this defense, the jury did not accept his reasoning, leading to his conviction.
The trial judge, Jed Rakoff, known for handling similar high-profile cases, is expected to deliver a lenient sentence. Rinsch could face up to 90 years in prison; however, a lighter sentence may be anticipated.
Impact on Netflix
Following the controversy, Netflix canceled “White Horse” in 2021 after Rinsch failed to deliver substantial content for the series. The company ultimately wrote off its total investment of $55 million as a loss. In 2024, Netflix was awarded nearly $12 million through civil arbitration regarding Rinsch’s claim of $14 million against the company, although compensation has yet to be received.
This case underscores serious issues of trust and financial accountability in the entertainment industry, resonating with stakeholders across the sector.
