Director Stole $11 Million from Netflix. Here's How He Did It.

A jury found Carl Erik Rinsch, a Hollywood director, guilty in December 2025 of stealing more than $11 million that Netflix gave him to make a TV show called White Horse. Instead of using the money to produce the series, he spent it on personal luxuries and risky investments.

Federal prosecutors in New York charged Rinsch in early 2025. They said he committed wire fraud (illegally moving money), money laundering (hiding where money came from), and related crimes. Netflix had paid him to create White Horse, a science-fiction series. The streaming company wired the funds expecting him to spend them on production. According to the Justice Department, Rinsch did something different: he moved the money into his own accounts and used it for a lifestyle and investments that had nothing to do with the show.

The money disappeared fast. By the end of April 2020 — early in the COVID-19 pandemic — Rinsch had already lost more than half the $11 million through trading and personal spending, based on financial records shown at trial. He spent the money before the show could ever really get started. There was no way to claim the project had simply gone over budget.

What Happens Next

Rinsch was supposed to be sentenced on April 17, 2026, but no public sentencing record is yet available. Prosecutors asked the judge to order him to pay Netflix back the full $11 million. On the criminal side, his conviction on seven counts exposes him to significant prison time under federal sentencing rules. The exact length depends on factors like how much money was lost and what the judge decides.

The $11 million restitution — paying back what he stole — is straightforward. He took the entire amount Netflix advanced. Courts sometimes reduce what someone has to pay back if the actual loss is lower than the amount taken, but when all the money vanished with no show produced, the math is simple: Netflix lost $11 million.

Why This Matters Beyond Hollywood

This kind of fraud works because of a structural gap in how streaming platforms do business. Netflix and similar companies often give huge sums of money upfront to independent producers and showrunners to create content. They sign contracts, but checking whether the money is actually being spent as promised takes time. A director with creative control over a project typically also controls the budget, which means one person has both the power to move the money and the opportunity to steal it. The White Horse case shows how that vulnerability can be exploited for months before the platform realizes the funds never reached the production.

For Netflix and other streaming companies, this case carries a practical lesson. Contracts need built-in audit rights — the ability to review spending — and milestone-based payments. Instead of handing over all the money upfront, companies can release funds in chunks as work progresses. These aren't just legal formalities. They're the main tool a company has to catch and stop theft before it spirals.

Rinsch directed the 2013 film 47 Ronin. His career had already been marked by production troubles before the conviction.

The White Horse series was never completed.