Director stole $11 million from Netflix and lost some of it at a casino
The case concerns funding for a Netflix series that was never completed. Sentencing is scheduled for April.
A federal district court in Manhattan, United States, found Hollywood director Carl Rinsch guilty of fraud, money laundering, and illegal financial transactions. He received a total of $55 million from Netflix for a new series, of which he spent $11 million on personal indulgences — including gambling losses at a casino.
The New York Times reported this. According to prosecutors, between 2018 and 2020 Netflix financed Rinsch’s new series “Conquest” (originally titled “White Horse”). $44 million was paid upfront, with an additional $11 million provided as extra funding.
Funding was halted in early 2021 due to the director’s erratic behavior — he wrote to Netflix executives claiming he had discovered a secret mechanism for transmitting the Covid-19 virus, and told his wife (who also served as the series’ producer) that he could predict earthquakes and lightning strikes. It later emerged that the director transferred project funds to his personal brokerage account and used them for cryptocurrency speculation, gambling, and a lavish lifestyle, including the following expenses:
- stays at five-star hotels in California and Spain;
- luxury cars — five Rolls-Royce and Ferrari vehicles;
- watches and clothing totaling $652,000;
- two handmade mattresses costing $638,000;
- bedding worth $295,000;
- credit card debt repayments amounting to $1.8 million.
Rinsch claimed that the cars and furniture were props for the show. However, prosecutors proved that none of these purchases were necessary for the production of the series.
Ultimately, the production was never completed, resulting in Netflix writing off the funds. Rinsch’s sentencing is scheduled for April.
"Rinsch stole $11 million intended for the series and lost it at a casino. We will pursue such individuals," said prosecutor Jay Clayton.
Rinsch’s lawyer, Benjamin Zeman, called the verdict erroneous, warning that it could set a precedent for creators who dispute decisions with large companies.