Carl Rinsch John Sciulli/Getty Images Share on Facebook Share on X Google Preferred Share to Flipboard Show additional share options Share on LinkedIn Share on Pinterest Share on Reddit Share on Tumblr Share on Whats App Send an Email Print the Article Post a Comment Logo text 47 Ronin director Carl Erik Rinsch was convicted of defrauding Netflix out of $11 million stemming from a deal with the company to make a sci-fi series he never delivered. A Manhattan jury returned the verdict and found the helmer guilty on all counts on Thursday, Business Insider reported from the courtroom. Rinsch had spent funds earmarked for White Horse on risky securities trades, using profits from those investments to sue Netflix for further payments to finish the show and purchase luxury goods. In a federal court in Manhattan, a jury found him guilty of wire fraud, money laundering and multiple counts related to engaging in illegal monetary transactions. Related Stories Business David Ellison Pitches WBD Shareholders Directly on Why Paramount Is a Better Buyer Than Netflix Movies Daryl McCormack on 'Knives Out 3,' the Genius of Emma Thompson and What to Expect From His Mr. Bingley in Netflix's 'Pride and Prejudice' Rinsch is expected to be sentenced to a lengthy prison term. He faced a maximum term of 90 years. Around 2017, Rinsch began filming White Horse, which follows a scientist who invents a human-like species that turns against its creators, according to the indictment. He completed six shortform episodes of the series using his own money and investments from various production companies, which were then used to pitch studios for funds to finish the first season. In 2020, Netflix sent Rinsch an additional $11 million in funds at his request to complete the series. It was meant to be used for various pre- and postproduction projects, including paying crew and editing footage that had already been shot. Instead, Rinsch transferred the money, wired to his production banner, to his personal brokerage account. In less than two months, he lost more than half of the funds on seven-figure options trades before spending the remainder on cryptocurrency. Rinsch proceeded to turn a profit, and a $10 million spending spree followed. He spent roughly $3.8 million on furniture and antiques, including nearly $1 million on two mattresses and linens, $2.4 million on five Rolls-Royces and a Ferrari, and $650,000 on watches, among other things, according to the indictment. The trial featured testimony from former Netflix executives, including Cindy Holland, now head of streaming at Paramount, and Peter Friedlander, now Amazon MGM Studios head of global TV, both of whom made the call to acquire White Horse. The jury was played a trailer for the series, which Friedlander called "visionary" at one point. During the trial, Rinsch's lawyers maintained the director was free to use the $11 million Netflix wired him as he pleased because it was his payment for finishing part of the series. They attempted to portray the case as a civil contract dispute rather than a criminal matter. In 2020, Netflix wrote off White Horse as a loss. THR Newsletters Sign up for THR news straight to your inbox every day Subscribe Sign Up SAG-AFTRA New York Governor Signs AI Protection Bills As SAG-AFTRA Executives Tout Gains for Performers OpenAI Bob Iger: Disney's OpenAI Deal "Does Not In Any Way" Threaten Creatives THR, Esq Disney Hits Google With AI Copyright Infringement Cease-and-Desist Letter OpenAI Disney to Invest $1 Billion in OpenAI in Major Deal That Boosts Sora in Hollywood Warner Bros. One Fewer Buyer? Warner Bros. Deal Rattles Producers Up North Wicked Frankie Grande Talks Gay Sex, Sister Ariana Grande's Support of His Sobriety on New Podcast From Viral 'Wicked' Journalist Tracy Gilchrist SAG-AFTRA New York Governor Signs AI Protection Bills As SAG-AFTRA Executives Tout Gains for Performers OpenAI Bob Iger: Disney's OpenAI Deal "Does Not In Any Way" Threaten Creatives THR, Esq Disney Hits Google With AI Copyright Infringement Cease-and-Desist Letter OpenAI Disney to Invest $1 Billion in OpenAI in Major Deal That Boosts Sora in Hollywood Warner Bros. One Fewer Buyer? Warner Bros. Deal Rattles Producers Up North Wicked Frankie Grande Talks Gay Sex, Sister Ariana Grande's Support of His Sobriety on New Podcast From Viral 'Wicked' Journalist Tracy Gilchrist