Carl Erik Rinsch, the Hollywood director behind the 2013 film 47 Ronin, has been sentenced to two and a half years in prison for defrauding Netflix of $11m (£8.3m). The 48-year-old was convicted of federal fraud and money laundering after using funds intended for a science fiction series to buy Rolls Royce cars, cryptocurrency, and mattresses costing hundreds of thousands of dollars, prosecutors said.
Judge Jay Rakoff handed down the sentence in a New York court on Wednesday, along with three years of supervised release, $11m in forfeitures, and a $700 fine. Rinsch faced up to 90 years in prison but had been expected to receive a lighter term. Speaking before the judge, he apologised and said he accepted responsibility for his crimes.
“Carl Erik Rinsch sentenced to 2.5 years for using Netflix funds on luxury cars and crypto.”
Prosecutors said Netflix gave Rinsch roughly $55m for the unfinished sci-fi show, initially named White Horse, including $11m he told them he needed to complete production. Instead, he placed the money in a personal account, invested it, and lost half within a couple of months, according to prosecutors. He then spent on lavish purchases and cryptocurrency.
During a one-week trial, Netflix executives testified they had only agreed to one season of the show, which Rinsch failed to deliver. Rinsch took the stand in a rare move for a criminal defendant, claiming the situation was a misunderstanding and that he believed the money was meant to keep the show going during the pandemic. The New York Times reported that friends and colleagues described Rinsch as growing increasingly erratic after signing the Netflix deal, including believing he could predict lightning strikes and volcanic eruptions and knew about a "secret transmission mechanism" for Covid-19.
US Attorney Jay Clayton said in a statement: "Today's sentence sends a deterrent message: Fraud will not be tolerated."