Hollywood writer-director Carl Rinsch has been handed a two-and-a-half-year prison sentence after being convicted of fraud involving $11 million obtained from Netflix for a sci-fi series that was never completed.
Supporters, including Keanu Reeves, had urged the court to consider leniency during sentencing.
Carl Rinsch, who directed the 2013 samurai fantasy film 47 Ronin, was convicted in December on federal wire fraud and related charges.
Prosecutors and evidence presented at trial said he convinced Netflix to provide $11 million to complete a series titled White Horse, but instead transferred the funds into a personal account. He then allegedly spent the money on luxury cars, designer watches, clothing, and home items, including about $638,000 on two mattresses.
The 48-year-old Rinsch and his lawyers told the court on Monday that his conduct was linked to mental health struggles and medication-related issues, which they said he is now managing with the help of a new care provider.
“This process has forced me to confront things about my health, my judgment and my life,” Rinsch said. He apologized for his behavior, acknowledged that “real harm was caused,” and explained: “I failed to recognize the danger of the state I was in.”
No specifics were disclosed in court regarding his mental health condition, and neither he nor his legal team offered additional details afterward.
Prosecutors, however, recommended a five-year prison term, noting that Rinsch is also responsible for roughly $11 million in restitution.
“Mr Rinsch had every possible advantage,” including family money, an elite education, famous friends and a high-flying career, prosecutor David Markewitz told the court. Rinsch’s motive, the prosecutor said, “was naked greed”.
Hailing from the Los Angeles area, Carl Rinsch—who also goes by Carl Erik Rinsch—began his filmmaking journey as a teenager creating short films. He later transitioned into directing commercials before gaining recognition for 47 Ronin, starring Keanu Reeves, where his character leads a group of exiled samurai seeking to avenge their master’s death.
Keanu Reeves told the court in a pre-sentencing letter that Rinsch “bring exceptional joy and warmth to the people around him” and “creative inspiration to others through his creativity and vision.”
The Matrix actor said he was not aware of the full details of the case, but noted that Rinsch “can self-sabotage by amplifying the scale, scope and landscape of what had been negotiated.” He also expressed hope that the court would consider “measures of leniency and mercy as well as justice” when determining his sentence.
According to prosecutors, Netflix had already paid Carl Rinsch about $44 million for White Horse between 2018 and 2019. They added that in 2020, the company transferred a further $11 million after he requested additional funds, saying it was needed to finish the series.
Instead of investing the funds into the production, Rinsch allegedly transferred the money into a personal account and made a series of unsuccessful investments, losing roughly half of the $11 million within a few months, according to prosecutors and witness testimony.
They added that he later moved the remaining funds into cryptocurrency, where he reportedly made some gains, which were then deposited into his personal bank account.
Prosecutors said the spending later turned extravagant, alleging that Rinsch purchased five Rolls-Royces, a red Ferrari, around $652,000 worth of watches and clothing, as well as high-end mattresses, along with an additional $295,000 spent on luxury bedding and linens. They also stated that part of the funds was used to settle approximately $1.8 million in credit card debt.
US District Judge Jed S. Rakoff noted that Rinsch’s mental health issues “may explain some of the excesses,” but said they did not “detract from the court’s conclusion that he was determined to lie to get substantial monies from Netflix and lie to cover it up.”
While Judge Rakoff announced the sentence, Rinsch sat at the table writing on a piece of paper in front of him. His lawyer, Benjamin Zeman, was seen gently patting him on the back during the proceedings.
After the hearing, Rinsch—who is scheduled to report to prison in September—embraced several supporters who attended the court session. He and his legal team declined to speak to reporters as they exited, although his lawyer, Daniel McGuinness, said they intend to appeal the ruling.
