Director Carl Rinsch Sentenced to 2.5 Years for $11 Million Fraud Against Netflix

Hollywood director Carl Rinsch was sentenced to 2.5 years in prison on Monday after being convicted of defrauding Netflix out of $11 million for an unfinished sci-fi series titled "White Horse." Rinsch, 48, diverted funds intended for the show into a personal account, using the money for luxury purchases, including five Rolls-Royces and $638,000 on two mattresses.

During the sentencing at a federal courthouse in New York City, Rinsch's defense cited mental health issues as a contributing factor to his actions. He expressed remorse, stating, "I failed to recognize the danger of the state I was in." However, U.S. District Judge Jed S. Rakoff noted that while Rinsch's mental health challenges may explain some of his behavior, they do not excuse his fraudulent actions.

Prosecutors revealed that Netflix had initially paid Rinsch approximately $44 million for the project in 2018 and 2019, followed by an additional $11 million in 2020. Instead of completing the series, Rinsch reportedly lost about half of the funds in failed investments and used the remainder for personal expenses.

Rinsch, who has also worked under the name Carl Erik Rinsch, is expected to report to prison in September. His legal team has indicated plans to appeal the conviction. Netflix has declined to comment on the sentencing.