Hollywood Director Carl Rinsch Convicted of $11M Netflix Fraud for Phantom Sci-Fi Show

Hollywood director Carl Erik Rinsch, best known for directing the 2013 Keanu Reeves film "47 Ronin," was convicted Thursday on federal charges of wire fraud, money laundering, and transacting with illicitly obtained property for scamming Netflix out of $11 million. The 48-year-old filmmaker was originally commissioned by Netflix in 2018 to produce a science fiction series initially titled "White Horse" and later called "Conquest." The streaming giant provided $44 million in funding to Rinsch's production house between 2018 and 2020 for the project. In 2020, Rinsch requested an additional $11 million from Netflix to complete the series. However, federal prosecutors alleged that instead of using the money for production, Rinsch siphoned the funds through numerous bank accounts before consolidating the entire $11 million into a personal brokerage account. According to court records, Rinsch proceeded to invest in securities and cryptocurrency, losing more than half of the $11 million within two months of receiving the money. The remaining funds were spent on lavish purchases that included several Rolls-Royces, a Ferrari, and approximately $1 million worth of luxury mattresses and high-end bedding. Prosecutors also indicated that some money went toward divorce fees. The promised sci-fi series never materialized, leaving Netflix without the content it had paid for and Rinsch facing serious federal charges. Rinsch's defense attorney, Benjamin Zeman, expressed disagreement with the verdict, stating it was wrong and "could set a dangerous precedent for artists who become embroiled in contractual and creative disputes with their benefactors, in this case one of the largest media companies in the world, finding themselves indicted by the federal government for fraud." The conviction represents a significant fall from grace for Rinsch, whose directing career peaked with "47 Ronin," though that film was considered a commercial disappointment. The case highlights the risks streaming platforms face when investing heavily in content production and the legal consequences directors can face when misappropriating production funds. Federal prosecutors in New York secured the conviction on multiple counts, including wire fraud, money laundering, and five counts of transacting with illicitly obtained property. The case serves as a warning to content creators about the serious legal ramifications of misusing production funding, regardless of creative disputes with media companies.