Key facts
- Director Carl Rinsch sentenced to 30 months in prison for defrauding Netflix.
- Rinsch took $11 million from Netflix, intended for a TV show, and spent it on crypto and luxury items.
- He invested a significant portion in Dogecoin, making approximately $27 million.
- Rinsch used the Dogecoin profits for personal expenses, including cars, furniture, and legal fees.
- He was convicted of wire fraud and money laundering charges.
Hollywood director Carl Rinsch has been sentenced to two and a half years in prison for defrauding Netflix out of $11 million. Rinsch, known for directing the 2013 film “47 Ronin,” was sentenced in a Manhattan federal court after being convicted on charges including fraud and money laundering.
Prosecutors stated that Rinsch orchestrated a scheme to steal millions by falsely claiming funds would finance a television show. Instead, he invested the money in speculative stock options and cryptocurrency, and purchased luxury goods. Rinsch was initially given $44 million by Netflix for his show, later requesting an additional $11 million, which was wired in March 2020.
Rinsch quickly lost about half of the $10.5 million he gambled on stock options. He then transferred over $4 million to the crypto exchange Kraken and invested it in Dogecoin, generating approximately $27 million upon liquidation in May 2021. With these winnings, Rinsch spent about $10 million on personal expenses, including credit card bills, lawyers, furniture, luxury cars, watches, and clothing.
He never completed the show or returned the funds. Prosecutors had requested a five-year sentence, while Rinsch's defense argued for a sentence without prison time, citing mental health issues. Keanu Reeves wrote a letter to the court in support of Rinsch. In addition to his prison term, Rinsch was sentenced to three years of supervised release and ordered to forfeit $11 million.