He Took Millions From Netflix for a Show That Never Happened — Now He’s Facing Prison Time

A former Hollywood director who received support from Keanu Reeves is now heading to prison after being convicted of taking millions from Netflix for a project that was never completed.

Carl Rinsch, best known for directing the 2013 film 47 Ronin starring Reeves, was sentenced to 2½ years in prison after a federal judge ruled that he used Netflix’s money for personal spending instead of finishing the planned science fiction series White Horse, also known as Conquest.

According to Deadline, Rinsch will surrender to authorities on September 1. Along with the prison sentence, the filmmaker was ordered to serve three years of supervised release after his release and repay $11 million to Netflix. He was also given mandatory financial penalties.

The case attracted extra attention because Reeves, who worked with Rinsch on 47 Ronin, wrote a letter asking Judge Jed Rakoff to show compassion when deciding the sentence. Reeves described Rinsch as someone who deserved some level of mercy, but the judge ultimately decided that the seriousness of the fraud required prison time.

Rinsch was convicted after prosecutors argued that he lied to Netflix about how he would use millions of dollars given to produce the series. The project was originally backed by Netflix in a deal worth more than $40 million.

Instead of using the money to complete the show, prosecutors said Rinsch moved funds into risky investments, including cryptocurrency and stock options. He also spent millions on luxury purchases, according to the U.S. Attorney’s Office for the Southern District of New York.

U.S. Attorney Jay Clayton said Rinsch created a plan to take money from the streaming company by falsely claiming it would be used for production. “Carl Erik Rinsch orchestrated a scheme to steal millions by seeking $11 million from a subscription streaming service, falsely claiming that money would be used to finance a television show that he was creating,” Clayton said.

He added that Rinsch used the money for other purposes instead of making the series. “Instead of using the money to make the show, Rinsch made risky bets on highly speculative stock options and cryptocurrency, and spent millions of dollars on luxury goods for himself,” Clayton explained.

During the sentencing hearing in New York, Judge Rakoff acknowledged that Rinsch had dealt with mental health struggles. However, the judge said those issues did not excuse his actions and found that the director deliberately lied in order to obtain more money from Netflix.

Rakoff said Rinsch was determined to hide what happened through what he described as deception and money laundering. Rinsch apologized in court and accepted responsibility for his actions. He said he failed to understand the seriousness of his situation and did not seek the help he needed. “I failed to recognize the danger of the condition I was in. I failed to seek help. I accept responsibility,” Rinsch said.

The legal battle between Rinsch and Netflix has lasted several years. After receiving millions for the project, Netflix eventually abandoned White Horse/Conquest after receiving only a few unfinished materials. The company later wrote off more than $55 million in costs connected to the failed production.

Netflix also won a $12 million arbitration ruling against Rinsch after he claimed the company actually owed him money. Despite the court decisions, Rinsch had not repaid Netflix before his sentencing. Now, he will serve prison time while still owing millions to the streaming giant.

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