Director Carl Rinsch Gets 30-Month Sentence for $11 Million Fraud Scheme Involving Netflix

Hollywood Director Sentenced for Fraud

NEW YORK (AP) — Carl Rinsch, a Hollywood screenwriter and director, was sentenced to 2.5 years in prison on Monday after being found guilty of defrauding Netflix out of $11 million for an incomplete science fiction series. Some of his supporters, including actor Keanu Reeves, had urged the court to be lenient.

Rinsch, known for the 2013 film “47 Ronin,” was convicted in December on charges of federal wire fraud. Prosecutors claimed that he convinced Netflix he required $11 million to finish the show “White Horse.” Instead, he diverted the funds to personal accounts, lavishly spending millions on luxury cars, watches, and even two mattresses that cost around $638,000.

In court, the 48-year-old Rinsch and his attorney mentioned mental health issues and medication-related problems as contributing factors to his actions. He is reportedly working with a new care provider to address these matters. “This process has forced me to confront my health, my judgment, and my life,” he stated, expressing remorse for what he described as his failure to recognize the gravity of his situation.

The specifics of his mental health problems weren’t discussed in court, and both Rinsch and his lawyer chose not to elaborate further.

Prosecutors contended that Rinsch should repay the full $11 million and receive a five-year prison term. Prosecutor David Markewitz pointed out Rinsch’s advantages, like family wealth and a successful career, suggesting that his motivations stemmed from “naked greed.”

Rinsch, who also goes by Karl Eric Rinsch, began his filmmaking career with short films during his teenage years before transitioning to commercials and later directing “47 Ronin,” where Keanu Reeves played the lead role of an exiled samurai seeking vengeance.

In a pre-sentencing letter to the court, Reeves described Rinsch as someone who “brought extraordinary joy and warmth” to people around him and inspired creativity. While he admitted he didn’t know the complete details of the case, he acknowledged Rinsch’s tendency towards self-sabotage in negotiations and hoped for a sentence that balanced justice with mercy.

Prosecutors detailed that Netflix had originally paid Rinsch around $44 million for “White Horse” between 2018 and 2019, and then provided him with an additional $11 million in 2020 for production completion. However, rather than investing that money into the project, Rinsch deposited it into a personal account, resulting in significant losses from unsuccessful investments shortly thereafter.

Though he initially lost about half of the funds, he later invested the remaining amount in cryptocurrency, yielding profits that were subsequently put into his personal bank account. Rinsch then made extravagant purchases, including five Rolls Royces and a red Ferrari, and spent substantial amounts on clothing and luxury goods while also settling around $1.8 million in credit card debt.

U.S. District Judge Jed S. Rakoff acknowledged that Rinsch’s mental health struggles might explain some of his actions but emphasized that they did not negate the fact that he had lied to obtain money from Netflix and to conceal his actions.

After his sentencing was announced, Rinsch reflected by jotting down thoughts on a piece of paper while one of his lawyers offered support. Following the court proceedings, Rinsch, who is set to be released in September, embraced several supporters. His legal team declined to provide comments on the way out but expressed anticipation regarding the appeal process.