Prosecutors Win $11M Fraud Case Against 'White Horse' Director Carl Rinsch

A Hollywood director was found guilty on Thursday of scamming Netflix out of $11 million for a failed sci-fi project. Carl Rinsch, known for directing the film "47 Ronin," was convicted on multiple counts, including wire fraud and money laundering. The trial centered on $11 million Netflix agreed to pay in 2020 to help Rinsch finish a futuristic series titled "White Horse." According to reports.

Instead of using the money to complete the project, Rinsch allegedly diverted funds for personal use, including a series of high-profile luxury purchases. Prosecutors said he bought several Rolls-Royces, a Ferrari, and even $638,000 in custom-made mattresses. He also invested some of the money in cryptocurrency, netting a profit before eventually depositing it into his own bank account.

The case highlights the growing scrutiny of high-profile creative frauds in the entertainment industry. Rinsch's legal team argued the case could set a dangerous precedent for artists in contractual disputes. However, prosecutors and U.S. Attorney Jay Clayton emphasized that Rinsch "took $11 million meant for a TV show and gambled it on speculative stock options and crypto transactions."

The Downfall of a Sci-Fi Ambition

Rinsch's project, "White Horse," was intended to be a sci-fi epic with ambitions of rivaling "Star Wars" or "Game of Thrones." Netflix had already paid him $44 million earlier for the project before agreeing to the additional $11 million in 2020 to wrap up the first season. However, Rinsch never delivered the completed show and instead used the funds for personal expenditures. He claimed during the trial that the $11 million was meant to reimburse him for pre-production expenses in the fall of 2019.

Netflix executives testified that the second round of funding was meant to finalize the project. Rinsch allegedly misrepresented the purpose of the money, claiming he needed it for only "soft pre-production" on a potential second season. The streaming giant, however, said it expected the funds to be used to complete the first season.

Legal and Financial Repercussions

Rinsch now faces a potential maximum sentence of 90 years in prison, though legal experts expect a significantly shorter term. His sentencing is scheduled for April 2026. His attorney, Benjamin Zeman, criticized the verdict as wrong and potentially harmful to artists embroiled in disputes with major corporations.

The case underscores the increasing legal and financial risks for high-net-worth individuals who mishandle large sums of money. Rinsch's lavish spending spree included over $1 million on luxury bedding and $652,000 on watches and clothes. The U.S. Department of Justice emphasized that the conviction sends a message to those who "steal from investors."

Broader Implications for the Entertainment Industry

The conviction of Rinsch marks another high-profile case in a year already marked by several financial and legal issues in Hollywood and the cryptocurrency sectors. From the downfall of crypto founder Do Kwon to government fraud schemes and failed investments, 2025 has seen a series of prominent legal cases. The Rinsch case also adds to the growing concerns about accountability in creative industries where large budgets and personal financial decisions can blur according to industry observers.

Netflix, which has faced its own controversies in 2025, including a proposed $82.7 billion acquisition of Warner Bros. Discovery, declined to comment on the case. Meanwhile, industry groups like the Writers Guild of America have voiced strong opposition to Netflix's aggressive expansion and its stance on theatrical releases.

As Rinsch awaits sentencing, the case serves as a cautionary tale about the consequences of misusing creative funds and the legal scrutiny now facing high-profile frauds in entertainment and finance.