Carl Erik Rinsch, the director behind 47 Ronin, has been charged with defrauding Netflix out of $11 million after failing to deliver a sci-fi series he had promised to produce. Rinsch, who had secured a deal with the streaming giant for the series White Horse, allegedly diverted funds intended for the show into risky investments and used the proceeds for personal luxuries and legal expenses.
According to an indictment filed on Tuesday by the U.S. Attorney’s Office for the Southern District of New York, Rinsch misused the funds Netflix provided for the show, intended for production expenses such as crew payments and editing costs. Instead, he transferred the $11 million to his personal brokerage account and engaged in high-risk trades, losing over half of the money in under two months. Rinsch then invested the remainder in cryptocurrency and used the profits to fund personal indulgences, including luxury items like five Rolls-Royce cars, expensive furniture, and even to cover legal fees for his divorce.
Rinsch faces multiple charges, including wire fraud, money laundering, and engaging in illegal financial transactions. If convicted, he could face up to 90 years in prison, assuming sentences are served consecutively.
Matthew Podolsky, Acting U.S. Attorney for the Southern District of New York, explained that Rinsch orchestrated a scheme to steal millions from Netflix by claiming the funds would be used for White Horse, a series about a scientist who creates a humanlike species that turns against its creators. However, Rinsch allegedly used the money for personal gain, with little to no progress on the show.
In 2020, Netflix sent Rinsch an additional $11 million for the series, but the director failed to use the funds as intended. Instead, he allegedly transferred the money into his own account and mismanaged it through risky ventures. Despite his failure to complete the show, Rinsch sued Netflix for more money, claiming he was owed more than $14 million. In a ruling last year, an arbitrator determined that Rinsch actually owed Netflix nearly $9 million.
Netflix, which has not publicly commented on the case, was not explicitly named in the indictment, but reports suggest the streaming service was the company defrauded in the scheme.
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