A director has been convicted of defrauding Netflix out of $11 million. Carl Rinsch, who directed the 2013 film ’47 Ronin,’ could face up to 90 years in prison.
Details of the Fraud Case
Rinsch started filming a project in 2017. The series involved a scientist creating an organic humanoid species that turns on its creators. He initially produced six episodes with personal and investor funds, leading to Netflix buying the rights for over $61 million.
In 2020, after spending $44 million from Netflix, Rinsch asked for an additional $11 million. Netflix approved this request.
Misuse of Funds and Consequences
Instead of using the funds to complete the series, Rinsch transferred the money to personal accounts. He lost over half of it in stock trades and spent the rest on cryptocurrency.
Though he profitably traded cryptocurrency, Rinsch used the earnings for a $10 million shopping spree. His spending included almost $4 million on furniture and antiques and $2.4 million on luxury cars.
Trial and Verdict
The Netflix series was never finished, leading to the project’s cancellation and a loss of over $55 million for the company. Rinsch faced charges of wire fraud, money laundering, and other crimes.
During the trial, Rinsch claimed the Netflix funds were a reimbursement for his personal investment. After five hours of deliberation, the jury found him guilty on all counts, although he is expected to receive a shorter sentence.
