Hollywood director jailed for defrauding Netflix out of $11m for unfinished show

A Hollywood director has been sentenced to two-and-a-half years in prison after defrauding Netflix out of $11m intended to finish the sci-fi series White Horse. Prosecutors said Carl Erik Rinsch diverted the funds into a personal account and spent heavily on luxury cars, furniture, antiques, mattresses, a Swiss watch, and credit card bills, while also making failed investments and trading in cryptocurrency. Netflix had already paid about $44m for the project in 2018-2019 before sending an additional $11m in 2020. The case is a reputational negative for Netflix, highlighting project oversight and spending controls on expensive original content, but it is not expected to have direct financial impact on the company’s operating results.