American director and screenwriter Carl Rinsch was sentenced to two and a half years in prison after a US federal court found him guilty of defrauding the Netflix platform of $11 million, money intended to complete a sci-fi series that was never finished.
According to prosecutors, Rinsch, known for the film “47 Ronin” (2013), would have requested additional large sums from Netflix under the pretext of completing the project “White Horse”.
In reality, he transferred the money to a personal account and spent it on luxury purchases, risky investments and extravagant goods, including Rolls-Royce cars, a Ferrari and furniture worth hundreds of thousands of dollars, writes The Guardian.
Investigators also revealed that the filmmaker lost a significant portion of the funds in failed investments, including in the cryptocurrency market, before using the rest of the money to pay off personal debts.
In court, Rinsch cited mental health issues and medical treatments, claiming they impaired his judgment.
“This process has forced me to confront things about my health, my judgment and my life”Rinsch said. He apologized for his behavior, admitted that “actual harm was caused” and explained: “I failed to understand the danger of the condition I was in.”
Prosecutors asked for a five-year prison sentence, accusing the director of “pure greed”.
“Mr. Rinsch had every possible advantage, including family money, an elite education, famous friends and a successful career”prosecutor David Markewitz said in court. Rinsch’s motive, the prosecutor said, “was pure greed.”
On the other hand, the defense argued that Rinsch was influenced by mental problems, and several people close to him, including actor Keanu Reeves, asked the court to show leniency.
The judge held that while medical problems may partially explain the behavior, they do not justify acts of fraud.
Carl Rinsch is due to report to prison in September. The sentence can be appealed.
