Carl Rinsch, the American filmmaker behind 47 Ronin, has been sentenced to 30 months in prison for allegedly swindling Netflix out of 11 million USD in production funds.
On Monday, the New York Times and AFP reported that Judge Jed Rakoff of the U.S. District Court for the Southern District of New York handed down the sentence to Rinsch on embezzlement charges.
The court also ordered Rinsch to repay 11 million USD to Netflix, undergo outpatient mental health treatment, and abstain from drug use.
Rinsch was accused of misappropriating 11 million USD in production funds from Netflix between 2018 and early 2020 for personal use. He was found guilty in December of last year.
U.S. Attorney Jay Clayton for the Southern District of New York revealed that Rinsch blew the money on high-risk stock options and cryptocurrencies instead of program production, and splurged millions on luxury items.
Rather than investing all of Netflix’s funds into production, Rinsch diverted a substantial portion into his personal brokerage account for stock trading.
Netflix pulled the plug on the production in early 2021 after Rinsch’s behavior became erratic and informed him of the decision.
Following this, Rinsch went on a spending spree with the remaining production budget. He indulged in risky investments, stayed at five-star hotels in California and Spain, purchased a Ferrari and five Rolls-Royces, and splurged on designer clothing and furniture.
Rinsch’s legal team pleaded for leniency, arguing that he acted under immense career pressure while going through a divorce.
Keanu Reeves, the star of 47 Ronin, submitted a character reference to the court before sentencing, describing Rinsch as an extraordinary artist with self-destructive tendencies.
In his letter, Keanu Reeves suggested that substance abuse and other issues had deteriorated Rinsch’s mental health, exacerbating his self-destructive and delusional behavior.