Filmmaker Carl Rinsch has been sentenced to 30 months in prison for defrauding Netflix of $11 million. The 47 Ronin director was convicted in December of wire fraud, money laundering, and illegal transactions.
In 2018, Netflix hired Rinsch to write and direct a sci-fi series called White Horse (later renamed Conquest). The streamer allocated $55 million to the project. No episodes were produced.
Rinsch then requested an additional $11 million from Netflix. The streamer approved it. Prosecutors demonstrated he transferred every dollar into his personal bank account, using the funds to purchase five Rolls-Royces and a Ferrari, pay off $1.7 million in credit card debt, and invest in cryptocurrencies and pharmaceutical stocks, particularly Gilead.
During trial, Rinsch claimed the $11 million was pre-production funding for a second season Netflix never authorized. Bank statements contradicted his account.
At Monday's sentencing, Rinsch expressed remorse and told the judge the case forced him to address mental health and medication issues. His lawyers argued these problems explained some of his behavior. Judge Jed S. Rakoff rejected this reasoning: "Mental health struggles may explain some of the excesses but don't detract from the court's conclusion that he was determined to lie to get substantial monies from Netflix, lie to cover it up," the judge said.
U.S. Attorney Jay Clayton stated: "Fraud will not be tolerated."
