'47 Ronin' Director Scams Netflix®, Blows $11M on Rolls-Royces and Luxury Bedding
Carl Erik Rinsch, best known for directing "47 Ronin," has been indicted on charges of wire fraud and money laundering after allegedly scamming Netflix® out of millions for a science fiction series that was never made.
A Big Budget and No Show
In 2018, Netflix agreed to fund Rinsch's ambitious sci-fi project, first titled "White Horse" and later renamed "Conquest." The company paid more than $44 million to take over the project and gave Rinsch final cut authority. In 2020, Rinsch requested an additional $11 million to complete the series, claiming it was needed for pre- and post-production.
However, a year later, with no episodes delivered and serious concerns about production quality and finances, Netflix canceled the project and wrote off a $55 million loss.
Where Did the Money Go?
Instead of finishing "Conquest," prosecutors say Rinsch used the $11 million for extravagant personal spending. According to the FBI, he moved the funds into personal accounts and spent them on speculative crypto trades, luxury hotels, and high-end items.
"Carl Rinsch allegedly stole more than $11 million from a prominent streaming platform to finance lavish purchases and personal investments instead of completing a promised television series," said FBI Assistant Director Leslie Backschies, according to Deadline. "The FBI will continue to reel in any individual who seeks to defraud businesses."
Court documents list his purchases: five Rolls-Royces, a Ferrari, more than $1.7 million in credit card payments, nearly $400,000 on luxury hotels, and $3.7 million on furniture and antiques, including almost $640,000 for two custom mattresses.
Legal Trouble and Lavish Living
In 2023, Netflix won a $12 million arbitration case against Rinsch. But according to the Variety report, he hasn't paid. He claimed in court he was broke, stating, "My monthly income is zero. I have been forced to focus all my efforts on being a 'professional litigant.'"
Despite these claims, Rinsch was reportedly living in a luxury apartment in West Hollywood as of April 2024. His wife's attorneys say this shows he's still maintaining an upscale lifestyle. He currently owes $420,000 in spousal support and says legal costs have left him nearly penniless.
A federal indictment charges Rinsch with one count of wire fraud, one count of money laundering, and five counts of unlawful monetary transactions. Each charge carries up to 10 or 20 years in prison. He was arrested in Los Angeles and released on a $100,000 bond.
A Fall From Hollywood's Favor
Rinsch once had a promising career, making futuristic ads under director Ridley Scott and landing a major studio film with "47 Ronin." Though that movie flopped, he gained support from Keanu Reeves, who later invested in "White Horse." At one point, Rinsch had $26.7 million in a crypto account. But as of mid-2023, that was down to $68,000.
When asked in court if he used Netflix's production money for crypto, Rinsch answered, "Yes, sir," according to Variety. The judge expressed disbelief, explaining that in the real world, people in his position are expected to separate business and personal finances.
For now, Netflix is still trying to recover its money.
References: Feds Indict '47 Ronin' Director Who Allegedly Scammed Netflix Out Of Millions For Never-Made TV Series | Netflix Wants $11 Million Back From Director Carl Rinsch, Who Allegedly Spent Lavishly on Cars, Bedding and a $28,000 Sofa
