47 Ronin director found guilty of defrauding Netflix out of $11 million

A director who was charged with defrauding Netflix out of millions of dollars has been found guilty, Business Insider reports. Carl Rinsch, director of the 2013 Keanu Reeves movie 47 Ronin, now faces up to 90 years in prison.

Rinsch began filming the project, White Horse (later renamed Conquest), around 2017. (Its premise: A scientist creates an organic humanoid species that turns on its creators.) The director completed six short-form episodes with his own money and investor funds. He then used those episodes to pitch studios for the money to complete the first season. Netflix ended up buying the rights for over $61 million.

In 2020, after spending $44 million of Netflix’s money on the series, Rinsch petitioned for another $11 million to complete the season. The company agreed.

Then things got weird. Instead of using Netflix’s investment to finish the series, Rinsch transferred the funds to personal accounts. Within two months, he lost over half of it on seven-figure stock trades. He spent the rest on cryptocurrency.

Then, lo and behold, Rinsch got a second chance: The crypto trades turned a profit. Did the director seize the opportunity to right his ship and finish the series? No, he didn’t. Instead, he used the crypto profits to go on a $10 million shopping spree. According to prosecutors, he spent nearly $4 million on furniture and antiques, $2.4 million on five Rolls-Royces and a Ferrari, almost $1 million on mattresses and linens and $650,000 on luxury watches and clothes.

The series was never completed. By 2021, Netflix had canceled the project and written off over $55 million in costs.

Rinsch’s charges included one count of wire fraud, one count of money laundering and five counts of engaging in monetary transactions in property derived from specified unlawful activity. During the trial, he took the stand in his own defense, claiming that Netflix’s millions were intended as reimbursement for the personal funds he invested in the series.

After less than five hours of jury deliberation, Rinsch was found guilty on all seven counts. Although he could face up to 90 years, he’s expected to receive a much shorter sentence.