Carl Rinsch, who directed “47 Ronin,” was found guilty of wire fraud, money laundering, and sending money illegally after taking $11 million from Netflix for the unfinished sci-fi series “White Horse.” After a two-week trial, the federal jury in Manhattan came to a decision in less than five hours.
Netflix first gave Rinsch about $44 million for “White Horse,” and then they gave him another $11 million when he said he needed it to finish making the movie. Instead, Rinsch moved money to his own account, where he lost half of it on risky stock options and cryptocurrency trades before spending the rest on things he didn’t need. He never sent the show, even though he told Netflix executives that it was going well.
Prosecutors brought up Rinsch’s purchases, which included several Rolls-Royces, a Ferrari, expensive watches, and a $439,000 Hastens mattress, all of which were insured in his name instead of for production. These costs were used as proof in court to support the fraud charges, along with bank statements and emails. Rinsch could get up to 90 years in prison, but his hearing in April is likely to give him a lighter sentence.
Rinsch’s team said that the payment was for work done before the second season, not fraud, because there was a contract dispute. After looking at witness testimony and exhibits, the jurors turned this down. U.S. Attorney Jay Clayton stressed that people who steal from investors through risky bets should be held accountable.
