Summary
One Hollywood director faces a legal battle againstNetflixafter allegedly receiving millions from the streaming giant for an undelivered series. If the alleged reports are true, he is in some serious trouble.
Carl Erik Rinsch worked closely withKeanu Reevesfor the historical fantasy action film based on Japanese lore,47 Roninreleased in 2013. The film had a massive budget of around $175-$225 million, making it one of the most expensive productions at the time. However, it bombed at the box office, resulting in a major financial loss for Universal Pictures. They were expecting the film to be a blockbuster, but it failed to attract audiences and it ended up being a critical and commercial failure. Despite the film’s performances, Rinsch scored a deal with Netflix in 2018 for a series calledWhite Horse, later renamedConquest, and that was when his legal troubles began.
According toDeadline, Rinsch was arrested in Los Angeles on Tuesday, as he was charged with wire fraud, money laundering, and five counts of monetary transactions in property derived from specified unlawful activity. If found guilty of all charges, he could be sentenced to up to 90 years in prison. The report added thatNetflixinitially paid him $44 million for the project, but Rinsch asked for another $11 million to finish the series. Netflix gave in, but a year later, Rinsch’s promised TV series remained unfinished, so Netflix decided to cancel it and wrote off over $55 million. Rinsch is accused of scheming to rob the streaming giant of millions for a project that never materialized and using the money for his personal expenses, including credit card bills, mattresses, and luxurious vehicles. Acting U.S. Attorney Matthew Podolsky said in astatement:
Rinsch instead allegedly used the funds on personal expenses and investments, including highly speculative options and cryptocurrency trading.
Based on courtrecords, Rinsch had already completed six short episodes before asking for more money. The production was set to film in Kenya, Mexico, Romania, Berlin, Hungary, and Uruguay in 2019. When they began shooting in Brazil, they went over budget and the director told Netflix he could only finish one episode with the initial money they provided, so he asked for an additional $11 million. Netflix, at the time, was still hoping the project would be finished, so they gave him the money in March 2020. However, theCOVID-19 pandemichit, shutting down production worldwide. Rinsch reportedly met Cindy Holland, the then VP in charge of original content, and another Netflix executive in June 2020 for an update about the project. The conversation turned to other topics, and the filmmaker was reportedly not focused on the TV series he pitched to Netflix. Eventually, the lead star left the project due to the production’s instability and Netflix decided to write off the cost. Rinsch allegedly spent the money quickly for fear that the IRS would tax him.
The battle between Rinsch and Netflix has been going on for years. Last year, an arbitration ruling required Rinsch to repay Netflix $12 million. He filed a petition to overturn the ruling, but the judge upheld the decision in November. It seems likely that he still didn’t pay Netflix the amount, so the streaming giant was forced to file a case against him. On the bright side, Netflix could produce a new dramatic series about Rinsch’s case similar toApple Cider Vinegar, which follows Belle Gibson’s fraudulent rise in the wellness industry. It’d probably be worth a binge-watch.
