Director gets prison for $55 million Netflix fraud, delivering no episodes

Director Carl Erik Rinsch has been sentenced to prison for defrauding Netflix of $55 million allocated for a science fiction series, "White Horse," which he never completed. The New York Federal Court judge, Jed S. Rakoff, handed down the sentence, which also includes three years of supervised release and an $11 million restitution payment, alongside a $700 fine. Rinsch had faced a potential sentence of up to 90 years under federal law, but the judge cited mitigating factors in reducing the penalty.

Prosecutors revealed that Rinsch requested an additional $11 million budget, claiming it was necessary for production. However, investigations showed he transferred this money to his personal account, investing it in risky ventures and losing half the funds within months. He then used the remaining money to purchase luxury items, including Rolls-Royce and Ferrari cars, expensive beds, and designer clothing.

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The events were a misunderstanding.

During the trial, Netflix executives testified that they had only agreed to a single season of the series, which Rinsch failed to deliver. Rinsch, in his defense, claimed the events were a "misunderstanding" and that the money was sent to him to ensure production continuity during the pandemic. His friends and colleagues reported that Rinsch exhibited erratic behavior after signing the contract, making claims about predicting natural disasters and possessing knowledge of a secret COVID-19 transmission mechanism.

The U.S. Attorney's Office stated that the sentence sends a strong message against qualified fraud. Rinsch apologized in court for his actions and accepted responsibility.

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The sentence carries a deterrent message against qualified fraud.