Director Carl Rinsch Convicted of $11M Netflix Fraud

A federal jury in New York convicted Hollywood director Carl Erik Rinsch on Thursday of defrauding Netflix out of $11 million intended for a science fiction series that was never completed. Rinsch, known for directing the 2013 film "47 Ronin," faces up to 90 years in prison on charges including wire fraud, money laundering, and engaging in monetary transactions derived from unlawful activity, though legal experts anticipate a shorter sentence.

Prosecutors in the U.S. Attorney's Office for the Southern District of New York argued that Rinsch, 48, misled Netflix into providing the additional funds in 2020 by claiming they were needed to finish production on "White Horse," a project about a scientist who creates a humanoid species that rebels against its creators. The streamer had already advanced approximately $44 million for the unfinished series, which Rinsch began developing around 2017 using his own money and investor funds to produce six short-form episodes as a pitch to studios.

Instead of using the $11 million for pre- and post-production costs like crew payments and editing, Rinsch transferred the money from his production company to a personal brokerage account, according...