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Hollywood director gets two and a half years in prison for defrauding Netflix
16 hours ago
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Madeline Halpert
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A Hollywood director convicted of defrauding Netflix of $11m (£8.3m) last year has been sentenced to two and a half years in prison.
Carl Erik Rinsch was accused of using Netflix funds intended to complete a science fiction series to buy cars, cryptocurrency and other luxuries for himself.
The 48-year-old, best known for the 2013 film 47 Ronin, was convicted of federal fraud and money laundering for misusing funds.
Rinsch faced up to 90 years in prison, but was expected to receive a lighter sentence.
Judge Jay Rakoff also sentenced Rinsch to three years of supervised release, $11m in forfeitures, and a $700 fine.
Speaking to the court before the judge issued his sentence, Rinsch apologised and said he accepted responsibility for his crimes.
"Today's sentence sends a deterrent message: Fraud will not be tolerated," US Attorney Jay Clayton said in a statement.
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, prosecutors said, he put the money in a personal account where he invested it and lost half within a couple of months.
He put funds into cryptocurrency, and spent money on lavish purchases such as Rolls Royce cars and mattresses costing hundreds of thousands of dollars, according to prosecutors.
During his one-week trial in New York, several Netflix executives were called to testify, saying they only agreed to one season of the show, which Rinsch failed to deliver.
Rinsch took the stand as well - a rare move for a defendant in a criminal case - claiming the situation was a misunderstanding and 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 shortly after he signed the Netflix deal.
The outlet reported that he believed he could predict lightning strikes and volcanic eruptions and knew about a "secret transmission mechanism" for Covid-19.
Hollywood director charged with defrauding $11m from Netflix
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