Director convicted of scamming $11 million from Netflix and going on lavish spending spree

Carl Erik Rinsch was convicted on charges that he scammed Netflix out of $11 million for a show that never materialized, while he instead used the cash for lavish purchases that included several Rolls-Royces, a Ferrari and about $1 million in mattresses and luxury bedding.

A Hollywood director was convicted Thursday on charges that he scammed Netflix out of $11 million for a show that never materialized, while he instead used the cash for lavish purchases that included several Rolls-Royces, a Ferrari and about $1 million in mattresses and luxury bedding.

Carl Erik Rinsch, best known for directing the film “47 Ronin,” was convicted of wire fraud, money laundering and other charges, according to court records and a spokesperson for federal prosecutors in New York.

In a statement, Rinsch’s attorney, Benjamin Zeman, said he thought the verdict was wrong and “could set a dangerous precedent for artists who become embroiled in contractual and creative disputes with their benefactors, in this case one of the largest media companies in the world, finding themselves indicted by the federal government for fraud.”

Prosecutors said Netflix had initially paid Rinsch about $44 million for an unfinished sci-fi show called “White Horse,” and then sent over an another $11 million after he said he needed additional funding to wrap up the production.

But instead of putting the money toward the show, Rinsch steered the cash to a personal account where he made a series of failed investments, losing around half of the $11 million in a couple months, according to prosecutors.