Hollywood screenwriter and director Carl Rinsch was sentenced Monday to two-and-a-half years in prison for allegedly defrauding Netflix of $11 million for a never-finished sci-fi series. Supporters, including Keanu Reeves, asked the court to show him leniency.
Rinsch, best known for the 2013 samurai fantasy film “47 Ronin,” was found guilty in December of wire fraud and other charges. According to the charges and trial testimony, he told Netflix he needed $11 million to complete a show called “White Horse,” but he transferred the money into a personal account and ended up spending colossal sums on luxury cars, watches, clothing and home goods, including $638,000 on two mattresses.
Rinsch, 48, and his lawyers told the court Monday that his behavior was due to mental health and medication issues, which they said he is now resolving with a new health care provider.
“This process forced me to confront issues regarding my health, my judgment and my life,” Rinsch said. He apologized for his behavior, acknowledged that “real harm had been caused” and explained: “I did not recognize the danger of the state I was in.”
His psychological problems were not described in court, and he and his lawyers subsequently refused to discuss them in detail.
Prosecutors argued that Rinsch, who also owes about $11 million in restitution, must serve five years in prison.
“Mr. Rinsch had every advantage possible,” including family money, an elite education, famous friends and a glittering career, prosecutor David Markewitz told the court. According to the prosecutor, Rinsch’s motive was “naked greed.”
Rinsch, who also professionally used the name Carl Erik Rinsch, is originally from Los Angeles and began making short films as a teenager. He later directed commercials and then brought attention to the film 47 Ronin, which starred Reeves. His character leads rogue samurai seeking revenge for the murder of their master.
Rinsch “brings exceptional joy and warmth to those around him” and “creative inspiration to others through his creativity and vision,” Reeves told the court in a letter before Rinsch’s sentencing.
The “Matrix” star said he didn’t know the details of the case, but acknowledged that Rinsch “may be sabotaging himself by exaggerating the scale, scope and landscape of what was negotiated.” He expressed hope that the director’s sentence “can be mitigated by measures of leniency and mercy, as well as justice.”
Prosecutors said Netflix initially paid Rinsch about $44 million for “White Horse” in 2018 and 2019, then provided another $11 million in 2020 after he said he needed more money to complete production.
But instead of investing that money in the show, Rinsch transferred the money to a personal account and made a series of bad investments, losing about half of the $11 million in a couple of months, according to testimony from prosecutors and witnesses.
They said he invested the remaining funds in the cryptocurrency market, making some profits, which Rinsch deposited into his bank account.
What followed, prosecutors say, were lavish purchases: Rinsch bought five Rolls-Royces, a red Ferrari, $652,000 worth of watches and clothing, expensive mattresses, and another $295,000 in luxury bedding and bedding. He also used some of the money to pay off about $1.8 million in credit card bills, prosecutors said.
U.S. District Judge Jed S. Rakoff said Rinsch’s mental health issues “may explain some of the excesses” but “does not detract from the court’s finding that he was determined to lie in order to make significant money from Netflix lying to cover it up.”
When Rakoff announced the prison term, Rinsch wrote something on a piece of paper lying on the table in front of him. One of his lawyers, Benjamin Zeman, patted the director on the back.
After the trial, Rinsch, who is due to appear in prison in September, hugged several people who came to support him. As he walked away, he and his lawyers declined to comment other than to say lawyer Daniel McGuinness said they looked forward to appealing the case.
Netflix declined to comment on his sentence.