’47 Ronin’ director found guilty of embezzling $11 million from Netflix
By ForGeeks
A filmmaker accused of defrauding Netflix of millions of dollars has pleaded guilty, Business Insider reports. Carl Rinsch, who directed the 2013 movie 47 Ronin with Keanu Reeves, could now face up to 90 years in prison.
Rinsch began work on White Horse (later renamed Conquest) around 2017. The plot: a scientist creates an organic humanoid race that turns against its creators. The director self-directed six short episodes using his own money and money from investors, and then offered studios funding to complete the first season. Netflix bought the rights to the project for more than $61 million.
In 2020, after spending $44 million of Netflix’s money, Rinsch requested another $11 million to complete the season, and the company agreed.
But instead of spending the money to finish the series, Rinsch transferred the funds into personal accounts. Within two months, he lost more than half of the money on seven-figure stock trades, and invested the rest in cryptocurrency.
He lost more than half of the money on seven-figure stock trades and invested the rest in cryptocurrency.
He seemed to have a chance to make things right: the crypto trades were turning a profit. But Rinsch didn’t end the series. Instead, he spent his cryptocurrency profits on a $10 million shopping spree: nearly $4 million on furniture and antiques, $2.4 million on five Rolls-Royce and a Ferrari, nearly $1 million on mattresses and bedding, and $650,000 on luxury watches and clothes.
The series was never completed. By 2021, Netflix canceled the project and wrote off more than $55 million in costs.
Rinsch was charged with one count of wire fraud, one count of money laundering and five counts of financial transactions involving criminal property. During the trial, he testified in his own defense, claiming that the Netflix millions were intended to repay his personal investments.
After less than five hours of deliberation, the jury found Rinsch guilty on all seven counts. Although he faces up to 90 years, the actual sentence is expected to be much shorter.
