Hollywood director sentenced after $11 million Netflix funds diverted to crypto betting

Rinsch, best known for directing the 2013 film “47 Ronin,” now faces sentencing following the federal jury’s decision.

Hollywood director Carl Erik Rinsch was convicted in Manhattan federal court of defrauding Netflix of $11 million for a science fiction television series that never materialized.

A federal jury found the 48-year-old executive guilty of multiple counts of bank fraud and money laundering after prosecutors said he siphoned off the funds for personal use, including high-risk stock trading, cryptocurrency investments, luxury cars, watches and five-star hotel stays in California and Spain.

The series, originally titled ‘White Horse’ and later renamed ‘Conquest’, had previously received approximately $44 million in funding. Rinsch began filming six short episodes with the support of his mentor, Keanu Reeves, before pitching the project to the studios.

Between late 2019 and early 2020, he requested an additional $11 million to complete production. Prosecutors said he transferred the money to personal accounts, losing about half on risky investments, and then used the remaining money for cryptocurrency and lavish spending.

Court documents show he bought five Rolls-Royces, a Ferrari, luxury watches and clothing, luxury mattresses and bedding, and paid off $1.8 million in personal credit card debt, all with money Netflix thought was intended for the series. Rinsch argued at the hearing that the dispute was contractual and that he considered the payments as compensation for work already completed.

U.S. Attorney for the Southern District of New York Jay Clayton said the sentencing comes after a weeklong trial before U.S. District Judge Jed S. Rakoff. He added:

“Carl Erik Rinsch took $11 million, intended for a TV show, and gambled with it on speculative stock options and crypto trades. Today’s sentencing shows that when someone steals from investors, we will follow the money and hold them accountable.”

The charges carry maximum sentences totaling 90 years in prison, although the actual sentence is expected to be shorter. Rinsch is expected to be sentenced on April 17, 2026.

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Rinsch was arrested in West Hollywood, California in March this year. Previous reports suggest he invested in the popular meme coin Dogecoin (DOGE) and made $27 million in profits.