Hollywood filmmaker Carl Rinsch has been handed a two-and-a-half-year jail term for swindling $11 million USD (approximately $15.6 million CAD) from Netflix in connection to an unreleased sci-fi series. Despite pleas for leniency from supporters, which included actor Keanu Reeves, Rinsch, famed for the 2013 film “47 Ronin,” was found guilty in December of wire fraud and other related charges.
Prosecutors revealed that Rinsch had convinced Netflix that the funds were required to complete a project named “White Horse,” but instead diverted the money to his personal account. The money was then spent on luxury items such as cars, watches, clothing, household goods, and notably, two mattresses amounting to $638,000 USD.
During the court proceedings on Monday, Rinsch, aged 48, and his legal team attributed his actions to mental health issues and medication challenges, which he is currently addressing with a new healthcare provider. Rinsch expressed remorse for his conduct, admitted to causing “real harm,” and acknowledged his failure to recognize the severity of his situation.
While prosecutors advocated for a five-year prison term and restitution of the embezzled funds, Rinsch, who also goes by the professional name Carl Erik Rinsch, comes from Los Angeles and began his filmmaking journey as a teenager. He gained recognition for his work on “47 Ronin,” starring Reeves.
In a letter submitted to the court before sentencing, Reeves praised Rinsch for his positive influence on others through his creativity and vision, despite his unawareness of the case specifics. Reeves hoped for a balanced judgment combining leniency, mercy, and justice for Rinsch.
The prosecution outlined how Netflix had initially paid Rinsch approximately $44 million USD for the project between 2018 and 2019, with an additional $11 million USD provided in 2020 to wrap up production. Instead of utilizing the funds for the intended purpose, Rinsch redirected the money to personal accounts, leading to failed investments and substantial losses.
Amid the extravagant spending spree that followed, Rinsch acquired luxury vehicles, watches, clothing, and bedding, in addition to settling outstanding credit card debts. Despite considerations for his mental health challenges, the court emphasized Rinsch’s deceitful actions to obtain significant sums from Netflix.
As the prison sentence was pronounced by U.S. District Judge Jed S. Rakoff, Rinsch, who is set to begin serving the sentence in September, received support from well-wishers in the courtroom. Following the sentencing, Rinsch and his legal team refrained from commenting, except for expressing intentions to appeal the verdict. Netflix chose not to provide a statement regarding the outcome.
