- The verdict was announced on December 11, 2025, following a trial in the US District Court for the Southern District of New York
- Rinsch was found guilty of wire fraud, money laundering, and five counts of engaging in monetary transactions involving proceeds from unlawful activity
- The Hollywood director could now face many years in prison under federal sentencing rules
Carl Erik Rinsch, Hollywood director best known for the 2013 Keanu Reeves flop, 47 Ronin, has been convicted by a federal jury in Manhattan of defrauding Netflix out of $11 million. The verdict, delivered on December 11, 2025, closes one of the most bizarre chapters in the streaming wars era, where unchecked content budgets fueled massive financial mismanagement.
According to the US Attorney’s Office, Rinsch was found guilty of wire fraud, money laundering, and five counts of engaging in monetary transactions involving proceeds from unlawful activity.
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Rinsch had a previous deal with the streaming service starting in 2018. Netflix paid him about $44 million for a sci-fi series titled White Horse (later Conquest), but it never came to fruition.
In early 2020, Rinsch negotiated an additional $11 million payment that was intended to fund the completion of the remaining episodes of the show. However, prosecutors showed that Rinsch did not use any of the funds for production.
Instead, within days of receiving the money, he began moving it through various bank accounts into his own investment account. He then used the funds to make personal investments and expenditures.
From Production Budget to “Doge” and Ferraris
In less than two months, Rinsch lost over half of the $11 million by making speculative investments, including stock options and cryptocurrency trading.
The Hollywood director also spent large amounts on personal and luxury items, including multiple Rolls-Royces, a Ferrari, furniture, antiques, and mattresses totaling millions.
Rinsch could now face many years in prison under federal sentencing rules. The wire fraud and money laundering charges each carry up to a 20-year maximum sentence. The additional charges related to moving the criminal proceeds could add more prison time on top of that.
His sentencing is currently scheduled for April 17, 2026.
A Pattern of “Hollywood Ponzi” Schemes
Interestingly, a number of other cases during the last few years demonstrate that authorities are still actively pursuing fraud and financial misconduct within the film, TV, and entertainment industries. For example, a former LA producer was indicted this year over a $12 million fraud scheme involving film production funds and alleged Ponzi-style misrepresentations.
Perhaps the most infamous case involved actor Zachary Horwitz (also known as Zach Avery), who was sentenced to 20 years in prison for running a massive Ponzi scheme that cost investors hundreds of millions.
Some older cases include the Canadian producer Garth Drabinsky (best known in theatre and film production circles), who was sent to prison in the late 2000s after being found guilty of fraud, and the case of former theatre agent Roland Scahill, who pleaded guilty in 2017 after stealing funds from investors by claiming he was producing a Broadway play that never existed.
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