Carl Rinsch found guilty of defrauding Netflix after diverting production funds

A jury has found director Carl Rinsch guilty on seven counts related to defrauding Netflix after he allegedly diverted roughly $11 million in requested funds and later spent profits from risky investments on luxury purchases instead of completing the series he had been hired to produce.

Rinsch pitched and partially produced a sci‑fi series (originally titled White Horse / later Conquest) and secured Netflix rights in a deal worth more than $61 million. Prosecutors say he spent $44 million of Netflix money on production, then requested an additional $11 million — funds he later transferred to personal accounts and used for stock and cryptocurrency trading, and lavish spending.

Timeline & key facts

• Netflix purchased rights for the series for over $61 million; Rinsch spent about $44 million before asking for $11 million more to finish production.
• Instead of completing the show, prosecutors allege Rinsch diverted the $11 million to personal accounts, losing and then gaining via seven‑figure stock trades and crypto investments.
• Rather than finishing the series after crypto gains, he reportedly spent roughly $10 million on personal items — furniture, luxury cars (five Rolls‑Royces and a Ferrari), watches, clothing and more.
• Netflix canceled the project by 2021 and wrote off more than $55 million in costs.

Charges and outcome

• Rinsch was convicted on one count of wire fraud, one count of money laundering and five counts related to monetary transactions in property derived from unlawful activity.
• He was found guilty on all seven counts after less than five hours of jury deliberation.
• While statutory exposure could reach many decades (reports cite up to 90 years), observers expect a much shorter sentence at sentencing.

Why it matters

The case highlights risks in film financing and the importance of oversight when large advances and production funds are disbursed. It also underscores how rapidly changing asset classes like crypto can complicate fraud investigations and restitution efforts.

For more on the verdict and courtroom details, see coverage here: Engadget — reporting on the Rinsch verdict.

Discussion: What do you think is an appropriate sentence in cases where creators divert production funds — and what safeguards should studios use to prevent similar fraud?