Carl Erik Rinsch, the Hollywood director behind the 2013 Keanu Reeves film 47 Ronin, has been found guilty of defrauding Netflix out of $11 million.
Federal prosecutors revealed on Thursday, December 11, that Rinsch used the money—intended to finish his long-delayed sci-fi series White Horse—for personal indulgences and risky cryptocurrency bets instead.
The conviction comes after a high-profile trial in New York, drawing attention to one of the largest cases of alleged Hollywood financial misconduct in recent years.
Lavish Spending Spree Exposed
Court documents painted a picture of extravagance.
Prosecutors detailed how Rinsch spent the money: $1.7 million on credit card bills, $3.3 million on furniture, antiques, and mattresses, $387,000 on a Swiss watch, and a jaw-dropping $2.4 million on five Rolls Royces and a red Ferrari.
The U.S. Attorney for the Southern District of New York emphasized that Rinsch also lost substantial sums in speculative stock options and cryptocurrency trades.
“Today’s conviction shows that when someone steals from investors, we will follow the money and hold them accountable,” said Jay Clayton.
The Charges and Potential Penalties
Rinsch faces serious consequences. He was convicted on one count of wire fraud and one count of money laundering, each carrying a potential 20-year sentence.
Additionally, he was found guilty on five counts of engaging in monetary transactions involving criminally derived property, each carrying a maximum 10-year penalty.
His sentencing is set for April 17, 2026, and he remains free on a $100,000 bond while contesting a separate arbitration ruling requiring repayment to Netflix.
Rinsch’s Defense Falls Short
During the trial, Rinsch testified on his own behalf, insisting that the funds—along with tens of millions previously received for White Horse (later renamed Conquest)—were intended to reimburse his own investment in the series.
He claimed Keanu Reeves’ prior involvement in 47 Ronin helped secure Netflix funding and argued that he intended to repurpose existing footage for a second season.
Former Netflix executives Cindy Holland and Peter Friedlander also testified, outlining the company’s expectations for the series.
Ultimately, the jury rejected Rinsch’s defense.
How the Fraud Unfolded
Prosecutors described a clear scheme.
Within days of receiving the $11 million, Rinsch began transferring funds through multiple accounts, ultimately consolidating them in a personal brokerage account.
From there, the money was used for personal purchases and speculative trading, which quickly wiped out over half of the funds.
By 2021, with only a few teaser clips produced, Netflix canceled the project, suffering a loss of more than $55 million.
In 2024, the company won a $12 million arbitration ruling against Rinsch, who has yet to repay any of the funds.
A Cautionary Tale for Hollywood
The Rinsch case highlights the risks of unchecked creative authority and the dangers of mixing personal indulgence with production budgets.
Despite retaining final-cut authority and significant control over the project, his actions ultimately left Netflix with a massive financial loss and a cautionary example for the industry.
As Hollywood and streaming platforms continue to invest heavily in ambitious projects, the outcome of Rinsch’s sentencing in April will be closely watched as a warning to other creatives who might consider putting personal gain above contractual obligations.
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