Key facts
- Hollywood director Carl Rinsch was sentenced to 2 1/2 years in prison.
- Rinsch was convicted of federal wire fraud and other charges.
- He defrauded Netflix of $11 million intended for a sci-fi series.
- Rinsch diverted funds to a personal account for luxury purchases and failed investments.
- He was ordered to pay $11 million in restitution and forfeitures, plus a $700 fine.
Hollywood writer-director Carl Rinsch was sentenced to 2 1/2 years in prison for defrauding Netflix of $11 million. Rinsch, 48, was convicted of federal wire fraud and other charges after telling Netflix he needed the money to finish a sci-fi series called 'White Horse,' but instead diverted the funds to a personal account.
Prosecutors stated that Rinsch spent the money on luxury cars, watches, clothes, and household goods, including $638,000 on two mattresses and $1.8 million to pay off credit card bills. He also made failed investments, losing about half the $11 million within months, and put the remainder into cryptocurrency.
Netflix had initially paid Rinsch approximately $44 million for the project in 2018 and 2019, and provided an additional $11 million in 2020. Rinsch's defense team argued his behavior was fueled by mental health struggles and medication problems. Supporters, including Keanu Reeves, had asked the court for leniency.
U.S. District Judge Jed S. Rakoff acknowledged Rinsch's mental health difficulties but concluded he was determined to lie for money. Rinsch is due to report to prison in September, and his lawyers indicated they plan to appeal the case.