Hollywood Director Convicted of $11M Netflix Scam, Invests in Cryptocurrency

Carl Rinsch, the director behind the 2013 film “47 Ronin,” has been convicted of serious financial crimes. His case involves the misappropriation of funds from Netflix, alongside purchases in cryptocurrency and luxury items.

Conviction Details and Charges

The jury found Rinsch guilty on multiple charges including one count of wire fraud and one count of money laundering. He faced five additional counts concerning transactions involving illicitly acquired property. The Southern District of New York’s prosecution presented compelling evidence against him.

Misappropriation of $11 Million

Rinsch was contracted by Netflix in 2018 to develop a sci-fi series titled “Conquest,” which initially had the working name “White Horse.” Netflix allocated a total of $44 million to his production company between 2018 and 2020. In 2020, Rinsch solicited an extra $11 million, claiming it was necessary for completing the series.

• Amount misappropriated: $11 million
• Netflix funding from 2018 to 2020: $44 million

However, prosecutors revealed that instead of using the funds for production, Rinsch funneled the money through various bank accounts. Ultimately, he consolidated the funds into a personal brokerage account, where he began to trade in securities.

Investments and Luxury Purchases

Within two months of receiving the $11 million, Rinsch lost a significant portion on speculative investments. He then shifted his focus to cryptocurrency. Notably, he had previously transformed a $4 million investment in Dogecoin into $27 million. This windfall, instead of being reinvested prudently, funded extravagant expenditures.

• Luxury expenses included:
• $3.3 million on furniture and antiques
• $2.4 million on a red Ferrari and five Rolls Royces
• $1.7 million on credit card bills
• $387,000 on a Swiss watch

Legal Consequences

Rinsch, who claimed he was not guilty, was convicted shortly after the trial began. His upcoming sentencing is scheduled for April 17, 2026. He faces a potential prison term of up to 90 years, with sentences allocated as follows:

• Wire fraud: up to 20 years
• Money laundering: up to 20 years
• Each of the five counts for spending criminal gains: up to 10 years

U.S. Attorney Jay Clayton emphasized the importance of accountability, stating, “Today’s conviction shows that when someone steals from investors, we will follow the money.”

Netflix’s Response

After Rinsch failed to meet production milestones for “Conquest,” Netflix officially canceled the project in 2021. The streaming platform subsequently wrote off the $55 million it had invested in the show and has not recovered any funds from Rinsch.

Carl Rinsch’s conviction highlights the severe repercussions of financial mismanagement, particularly in the entertainment industry, where significant funds are at stake. As the legal proceedings unfold, the case serves as a reminder of the importance of financial integrity.