Hollywood Director Found Guilty of Misusing $11M from Netflix
Conviction Overview
Carl Erik Rinsch, known for directing the 2013 film “47 Ronin,” was convicted of wire fraud and money laundering in a Manhattan federal court. The 48‑year‑old director was found guilty of misusing $11 million that Netflix had allocated for a science‑fiction television series titled “Conquest,” formerly known as “White Horse.”
Misuse of Netflix Funds
Instead of using the money to complete the series, Rinsch diverted the funds to personal expenses, including high‑risk stock trades, cryptocurrency investments, luxury cars, watches, and extravagant hotel stays in California and Spain. Prosecutors showed that he transferred the money into his personal accounts, losing roughly half through risky investments and spending the remainder on luxury items.
Luxury Purchases
Court documents detail that Rinsch bought five Rolls‑Royces, a Ferrari, high‑end watches, designer clothing, luxury mattresses, and bedding. He also used the misappropriated funds to pay off $1.8 million in personal credit‑card debt.
Legal Proceedings
During the trial, Rinsch claimed the dispute was contractual and that the payments were reimbursement for work already completed. US Attorney for the Southern District of New York, Jay Clayton, stated that Rinsch gambled the money meant for the TV show on speculative stock options and crypto transactions. The charges carry a maximum penalty of 90 years in prison, though a shorter sentence is expected. Rinsch is scheduled to be sentenced on April 17, 2026.
Background on the Project
The series had previously secured around $44 million in funding, and Rinsch had begun filming six short‑form episodes with support from his mentor, Keanu Reeves, before seeking additional studio financing. The project never materialized as planned.
Arrest and Prior Activities
Rinsch was arrested in March in West Hollywood, California. Earlier reports indicate that he had invested in the meme coin Dogecoin and reportedly made a profit of $27 million.
Implications
This conviction underscores the serious consequences of financial fraud and the misappropriation of funds intended for creative projects.
