A Hollywood director who convinced Netflix to invest millions in a sci-fi series has been sentenced to two and a half years in prison for using the money to buy Rolls-Royces, cryptocurrency and luxury mattresses.
Carl Erik Rinsch, 48, best known for directing the 2013 film 47 Ronin, was convicted last year of federal fraud and money laundering after prosecutors said he siphoned $11m (£8.3m) from the streaming giant to fund a lavish personal lifestyle. He faced up to 90 years in prison, but Judge Jay Rakoff handed down a significantly lighter sentence on Monday: 30 months in federal prison, followed by three years of supervised release, along with $11m in forfeitures and a $700 fine.
“Hollywood director Carl Erik Rinsch jailed for 2.5 years for defrauding Netflix of $11m to buy cars, crypto and luxury items.”
Speaking in court before the sentence was issued, Rinsch apologised and said he accepted responsibility for his crimes.
Prosecutors said Netflix gave Rinsch roughly $55m for an unfinished science fiction show initially named White Horse, including $11m he told them he needed to complete production. Instead, they said, he deposited the money into a personal account, invested it and lost half within a couple of months. He also poured funds into cryptocurrency and spent money on extravagant purchases such as Rolls Royce cars and mattresses costing hundreds of thousands of dollars.
During a one-week trial in New York, several Netflix executives testified that they had only agreed to one season of the show, which Rinsch failed to deliver. In a rare move for a defendant in a criminal case, Rinsch took the stand, claiming the situation was a misunderstanding and that he believed the money was meant to keep the show running during the pandemic.
The New York Times reported that friends and colleagues described Rinsch as growing increasingly erratic shortly after signing the Netflix deal, adding that he believed he could predict lightning strikes and volcanic eruptions and knew about a “secret transmission mechanism” for Covid-19.
“Today's sentence sends a deterrent message: Fraud will not be tolerated,” US Attorney Jay Clayton said in a statement.