Hollywood director Carl Erik Rinsch was convicted this Thursday for a million-dollar scheme that diverted funds from Netflix for luxury purchases and financial bets. The conviction, confirmed by federal prosecutors in New York, involves crimes of electronic fraud and money laundering related to a never-completed TV series project.
The Filmmaker’s Conviction for Diverting Millions
The US Justice Department found it proven that Rinsch, 48, director of the film ’47 Ronin’, received a million-dollar advance from Netflix to produce the science fiction series ‘White Horse’. According to court documents, after an initial payment of $44 million, he requested and received an additional $11 million claiming completion needs. The money, however, was never applied to the production.
The Details of the Scam and the Risky Investments
Prosecutors detailed that the filmmaker transferred the funds to a personal account. There, he lost about half the amount (approximately $5.5 million) in a few months with failed speculative stock investments. With the remainder, Rinsch entered the cryptocurrency market, where he made some profit. The entire amount was later deposited into his bank accounts for personal use, according to the accusation.
The Defense and a Warning About a ‘Dangerous Precedent’
Defense attorney Benjamin Zeman issued a statement contesting the verdict. He argued that the decision ‘could set a dangerous precedent for artists who engage in contractual and creative disputes with their funders’. Zeman suggested that the case turns a commercial conflict with ‘one of the world’s largest media companies’ into a federal crime.
The Spending Spree on Cars, Watches and Luxury Mattresses
With the diverted money, Rinsch embarked on a series of extravagant acquisitions. The shopping list, presented as evidence in court, includes:
- Five Rolls-Royce cars
- A Ferrari
- Watches and clothing worth $652,000
- Two mattresses for approximately $638,000
- Luxury bedding and sheets worth $295,000
Additionally, part of the funds was used to pay about $1.8 million in credit card bills. The ‘White Horse’ series never left the drawing board.
Next Steps and the Sentence Scheduled for April
Carl Erik Rinsch’s sentencing is scheduled for the month of April. US Attorney Jay Clayton emphasized in a statement that the conviction sends a clear message: ‘When someone steals from investors, we will follow the money and hold them accountable’. The case exemplifies the aggressive stance of the US Department of Justice against large-scale financial fraud in the entertainment industry.
