Film director Carl Rinsch has been sentenced to two-and-a-half years in prison after defrauding Netflix of $11 million meant for the production of an original science fiction series titled White Horse.
The sentence was handed down on Monday by US District Judge Jed S Rakoff in New York. Although Rinsch faced a maximum prison term of up to nine years, the court imposed a sentence of two-and-a-half years.
The judge ordered the 48-year-old director to serve three years of supervised release after completing his sentence. He was also ordered to forfeit $11 million and pay a $700 fine.
According to prosecutors, Netflix had provided Rinsch with the money to complete White Horse, but instead of using it for production, he transferred the funds to his personal bank account. He then used a large portion of the money for risky cryptocurrency trading and other speculative investments.
Prosecutors also said Rinsch spent part of the money on a lavish lifestyle, including luxury purchases, instead of finishing the series.
Rinsch was convicted of wire fraud, money laundering and engaging in monetary transactions involving property obtained through unlawful activity. During Monday’s sentencing hearing, Rinsch apologised to the court and accepted responsibility for his actions.
Ahead of the sentencing, actor Keanu Reeves, who worked with Rinsch on the 2013 film 47 Ronin, submitted a letter to the court asking the judge to show leniency. Despite the request, the judge proceeded with the prison sentence.
Reeves said he had known Rinsch for about 15 years. “He directed me in a film titled “47 Ronin” and we stayed in touch after production, later becoming friends.”
“I do not know the details of this case. But based upon what I do know about Carl, I did want to take the opportunity to write on his behalf, in the hope that his sentence might be tempered with measures of leniency and mercy as well as justice,” he added.
In the letter, Reeves described Rinsch as an “exceptional artist” and praised his unfinished Netflix science-fiction series White Horse. He said that, from what he had seen, the project was “superb and visionary,” even though it was never completed.
Rinsch’s lawyer declined to comment following the sentencing.
