’47 Ronin’ director found guilty of defrauding Netflix out of $11 million

Director accused of defrauding Netflix out of millions of dollars found guilty Business Insider reports. Carl Rinsch, director of the 2013 Keanu Reeves film 47 Roninnow faces up to 90 years in prison.

Rinsch began filming the project, White Horse (later renamed Conquest), circa 2017. (Its premise: a scientist creates an organic humanoid species that turns against its creators.) The director made six short episodes with his own money and that of his investors. He then used these episodes to pitch studios for the money needed to complete the first season. Netflix ended up purchasing the rights for over $61 million.

In 2020, after spending $44 million from Netflix on the series, Rinsch requested an additional $11 million to complete the season. The company agreed.

Then things got weird. Instead of using Netflix’s investment to complete the series, Rinsch transferred the funds to personal accounts. In two months, he lost more than half on seven-figure stock trades. He spent the rest on cryptocurrency.

Lo and behold, Rinsch got a second chance: the crypto trades generated profits. Did the director seize the opportunity to right his ship and finish the series? No, he didn’t. Instead, he used crypto profits to go on a $10 million shopping spree. According to prosecutors, he spent nearly $4 million on furniture and antiques, $2.4 million on five Rolls-Royces and a Ferrari, nearly $1 million on mattresses and sheets and $650,000 on luxury watches and clothing.

The series was never finished. By 2021, Netflix had canceled the project and written off over $55 million in costs.

The charges against Rinsch included one count of wire fraud, one count of money laundering, and five counts of monetary transactions involving property derived from specified illegal activities. During the trial, he took the stand in his own defense, claiming that the millions from Netflix were intended to repay personal funds he had invested in the series.

After less than five hours of jury deliberation, Rinsch was found guilty on all seven counts. Although he faces up to 90 years in prison, he should receive a much shorter sentence.