Hollywood filmmaker Carl Erik Rinsch has been sentenced to two and a half years in prison after a US court convicted him of defrauding Netflix of $11 million that was meant to complete an unfinished science fiction series.
Rinsch, 48, director of 47 Ronin, faced federal fraud and money laundering charges after prosecutors accused him of diverting production funds for personal investments and luxury purchases instead of completing the project.
US District Judge Jed S Rakoff sentenced Rinsch to two and a half years in prison, followed by three years of supervised release. The court also ordered him to forfeit $11 million and pay a $700 fine.
Before sentencing, Rinsch apologised in court and accepted responsibility for his actions. US Attorney Jay Clayton said the sentence sent a clear message that authorities would not tolerate financial fraud.
Netflix had committed about $55 million to the science fiction series, originally titled White Horse. Prosecutors said Rinsch later sought an additional $11 million, claiming he needed the money to complete production.
Instead, prosecutors said, he transferred the funds into a personal account and used the money for investments and personal spending. They said he lost nearly half of the amount through investments before turning to cryptocurrency. He later spent millions of dollars on luxury items, including Rolls-Royce cars and expensive furniture.
During the week-long trial in New York, Netflix executives testified that the company had approved only one season of the series. They said Rinsch never delivered the completed project.
Rinsch defended himself in court, saying the money helped keep production running during the Covid-19 pandemic. He argued that the dispute resulted from a misunderstanding.
The case also drew attention to concerns about Rinsch’s behaviour during that period.
According to The New York Times, friends and colleagues said he became increasingly unpredictable after signing the Netflix deal. They claimed he said he could predict lightning strikes and volcanic eruptions and knew of a secret mechanism behind the transmission of Covid-19.
