Filmmaker Carl Rinsch Found Guilty in $11M Netflix Fraud Case

TLDR

• Carl Rinsch misused $11M from Netflix, investing in crypto and speculative stocks.
• Jury rejected Rinsch’s claim that funds were for unfinished sci-fi series White Horse.
• Netflix wrote off over $55M after canceling the project due to mismanagement.
• Sentencing for wire fraud and money laundering set for April 17, 2026, in Manhattan.

Filmmaker Carl Rinsch has been convicted of defrauding Netflix of over $11 million, diverting the money into personal investments, including cryptocurrency. 

The verdict came after a brief jury deliberation in a Manhattan federal courtroom, concluding a trial that lasted just under two weeks. Rinsch, known for directing 47 Ronin, faced multiple charges, including wire fraud, money laundering, and engaging in illicit monetary transactions.

Rinsch had claimed the funds were to cover costs he personally contributed to the unfinished sci-fi series White Horse, later renamed Conquest. 

Despite testimony from Keanu Reeves supporting the project, the jury rejected his defense. “Carl Erik Rinsch took $11 million meant for a TV show and gambled it on speculative stock options and crypto transactions,” said U.S. Attorney Jay Clayton. “Today’s conviction shows that when someone steals from investors, we will follow the money and hold them accountable.”

Trial Proceedings and Charges

The indictment from the Southern District of New York charged Rinsch with one count of wire fraud, one count of money laundering, and five counts of unlawful monetary transactions. 

Each count carries significant prison time, with wire fraud and money laundering up to 20 years each, and monetary transactions up to 10 years apiece. If combined, the potential maximum sentence could reach 90 years, though sentencing will be far lower under Judge Jed Rakoff’s discretion.

Netflix had initially invested over $44 million into Rinsch’s project, later writing off more than $55 million after the streamer canceled the series in 2021. 

The director requested an additional $11 million in 2020 for production needs, which the company denied. During the trial, former Netflix executives Cindy Holland and Peter Friedlander testified about mismanagement and the failure to deliver a completed series.

Rinsch also faced arbitration over a separate $12 million ruling in 2024, in which Netflix demanded repayment for funds improperly spent. The filmmaker has yet to return any of the money, highlighting ongoing disputes over his financial management.

Misuse of Netflix Funds

Government prosecutors detailed that Rinsch spent the $11 million on luxury items, stock trading, and cryptocurrency transactions rather than production. 

His claim that he planned to leverage existing footage for a second season failed to convince the jury. Rinsch told the court he was using some material he had already shot as leverage for a potential second season. “I was trying to get the resources to complete the project and deliver what I promised,” he testified during the trial.

Jay Clayton emphasized the broader consequences of such actions, stating, “When someone steals from investors, we will follow the money and hold them accountable.” Rinsch was released on a $100,000 bond after the indictment in March, with his sentencing set for April 17, 2026. Netflix has not commented on the court ruling.

The case serves as a reminder of the scrutiny applied to high-value entertainment funding, particularly when digital assets like cryptocurrency are involved.

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