Carl Rinsch Sentenced to 30 Months for Netflix Fraud

A Hollywood director was sentenced on Monday to two and a half years in federal prison for defrauding Netflix of $11 million intended for a science fiction series that was never produced. Carl Erik Rinsch, best known for directing the 2013 film "47 Ronin," received the 30-month sentence from U.S. District Judge Jed S. Rakoff in a Manhattan courtroom after being convicted in December on charges of wire fraud and money laundering.

Prosecutors from the U.S. Attorney's Office for the Southern District of New York had sought a five-year sentence, arguing that Rinsch orchestrated a deliberate scheme. They said that after Netflix had already invested approximately $55 million into the series, initially titled "White Horse" and later renamed "Conquest," Rinsch requested an additional $11 million for production needs. Instead of using the funds for the show, he transferred the money to his personal accounts. Bank records showed he gambled millions on stock options and cryptocurrency, including investments in the pharmaceutical company Gilead, and spent heavily on luxury goods, including five Rolls-Royces, a Ferrari, and high-end furnishings.

Judge Rakoff, while acknowledging the severity...