Hollywood Director Convicted Of Defrauding Netflix In $11 Million Luxury Spending Spree

The Undelivered Series That Cost Netflix Millions

Director Carl Rinsch was convicted Thursday on charges of defrauding Netflix out of $11 million during production of the never-completed sci-fi series "White Horse," with the 47-year-old filmmaker facing wire fraud, money laundering and other charges . The series, which follows a scientist who invents a human-like species that turns against its creators, began filming around 2017 when Rinsch completed six short-form episodes using his own money and investments from various production companies .

Netflix had initially paid Rinsch about $44 million for the unfinished sci-fi show, then sent over another $11 million after he said he needed additional funding to wrap up production . In 2020, Netflix sent Rinsch the additional $11 million at his request, money that was meant to be used for various pre- and postproduction projects, including paying crew and editing footage that had already been shot .

From Production Funds to Personal Gambling

Instead of using the money for the show, Rinsch transferred the funds from his production banner to his personal brokerage account, where in less than two months he lost more than half of the funds on seven-figure options trades before spending the remainder on cryptocurrency . According to prosecutors, Rinsch gambled millions on Gilead, a pharmaceutical company he believed could cure COVID-19 as the pandemic was beginning to spread, ultimately incurring steep losses .

Despite these losses, Rinsch had previously achieved a significant gain in cryptocurrency, turning a $4 million Dogecoin investment into $27 million in 2021, though the money was reportedly used to support his personal luxury expenditures rather than the intended production . After turning a profit on his cryptocurrency investments, a $10 million spending spree followed .

Extraordinary Luxury Purchases

Rinsch bought five Rolls-Royces and one Ferrari, along with $652,000 on watches and clothes, plus two mattresses for about $638,000 and spent another $295,000 on luxury bedding and linens . His expenditures included over $1.7 million in credit card payments, more than $3.3 million on antiques and furniture, a Swiss watch valued at roughly $387,000, and luxury vehicles totaling approximately $2.4 million .

During his testimony, Rinsch claimed his purchases were entirely legitimate and that the Rolls-Royces were needed for the show . However, prosecutors urged the jury not to believe his explanation, with prosecutor Timothy Capozzi stating, "He lied to you. He thought he could trick you just like Netflix" .

The Costly Aftermath

In 2021, with absolutely nothing to show for its investment but a few teaser clips, Netflix pulled the plug on White Horse and wrote off over $55 million in costs . Netflix won a $12 million arbitration ruling against Rinsch in 2024 after the filmmaker claimed that the company actually owed him $14 million .

Rinsch faces up to 90 years in prison following his conviction, though the Manhattan judge overseeing the case previously stated that such punishment is "wholly irrational," with a sentence of up to 20 years more likely, and his sentencing is scheduled for April 17 . This case serves as a stark reminder that even in Hollywood's high-stakes environment, misappropriating funds for personal gain carries severe legal consequences that can destroy careers and freedom alike.