A New York jury has found filmmaker Carl Rinsch guilty of defrauding Netflix out of over $11 million for a sci-fi series that was never completed. Rinsch, known for directing 47 Ronin, faced serious charges, including wire fraud and money laundering, which could land him up to 90 years in prison. However, he may receive a lighter sentence from Judge Jed Rakoff.
The case began earlier this year when Rinsch was accused of creating a scheme to defraud Netflix. Prosecutors stated he acquired funds under false pretenses. In a surprising move, Rinsch decided to testify on his own behalf, maintaining his innocence. He argued that the money he received was meant to cover his own investment in the ambitious yet unfinished project known as White Horse/Conquest.
Rinsch claimed he had shot some material for the show and used it to leverage a second season from Netflix. However, the jury didn’t buy his story, especially with testimony from former Netflix executives Cindy Holland and Peter Friedlander.
Rinsch was charged with one count of wire fraud and one count of money laundering, each carrying a maximum 20-year sentence, along with five counts of engaging in monetary transactions linked to criminal activity, which could add another 10 years. He was released on a $100,000 bond after the indictment in March.
In 2018, Holland acquired White Horse for over $61 million from Amazon. Rinsch spent $44 million of Netflix’s money, requesting an additional $11 million in 2020 for production needs. By 2021, Netflix had pulled the plug on the project, writing off over $55 million in losses.
In 2024, Netflix won a $12 million arbitration ruling against Rinsch after he claimed the company owed him $14 million. He has not repaid Netflix, as revealed during the trial.
Recent statistics show a growing concern around fraud in the entertainment industry. According to a 2022 survey by the Association of National Advertisers, around 34% of industry professionals reported witnessing fraudulent activities. This case serves as a stark reminder of the importance of transparency and accountability in such a lucrative field.
As social media users reacted to the verdict, discussions highlighted the impact of these events on the credibility of creative projects and the entertainment industry overall. Many expressed concerns over how such fraud could shape investor trust in future projects.
For more information on fraud in the entertainment sector, check out this report from the Association of National Advertisers for deeper insights into the challenges faced by the industry.
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47 Ronin,Cindy Holland,Fraud,Keanu Reeves,Netflix,Paramount,Ted Sarandos
