Carl Rinsch Netflix Trial Commences: Was Sci-Fi Director a Fraudster or Simply in over His Head?

Our goal now is to understand this project and determine how to contain it, the trailer for White Horse declares. The series made an unofficial appearance on Tuesday during the federal trial of director Carl Rinsch, accused of defrauding Netflix of millions during the troubled production.

The unfinished series was pitched as a high-concept thriller exploring the emergence of humanoid organic intelligences and the human factions attempting to destroy them. Marketed as a fusion of Star Wars, Westworld, and The Matrix, Netflix executives initially saw it as a potential flagship franchise. However, production difficulties in late 2019 stalled the project, leading Netflix to provide Rinsch with an additional $11 million on March 2, 2020just before the pandemic disrupted global filming.

Despite the infusion of funds, Netflix never received new footage or materials and eventually wrote off the investment. Over five years later, Rinsch, now 48, faces serious charges, including wire fraud, money laundering, and conducting illegal transactions, which could result in a lengthy prison sentence.

Prosecutors claim Rinsch diverted the $11 million for personal use, purchasing a $740,000 Ferrari, a $340,000 watch, and four luxury mattresses totaling $638,000, among other expenses. This is a case about greed and deception, the prosecution told the jury, asserting that Rinsch exploited Netflix employees to access the funds for personal gain.

The government outlined a complex trail of transactions, detailing how Rinsch moved the money through multiple accounts before depositing it into his personal brokerage account. Testimonies from his financial manager, assistant, bookkeeper, and editor are expected to trace the expenditures. Several Netflix executives, including Cindy Holland, now head of streaming at Paramount, are also anticipated to testify.

Defense attorney Michael Arthus described Rinsch as an artist caught in a contractual dispute rather than a criminal. Arthus painted Rinsch as a visionary who prioritized storytelling over budgeting and argued that external factors like executive group think and the pandemic contributed to the projects collapse. He was a creative genius struggling with the realities of production, Arthus said.

During opening statements, Rinsch was seen taking notes, while Peter Friedlander, former Netflix executive now at Amazon MGM Studios, became the first witness. Friedlander, alongside Holland, helped acquire White Horse, with producers including Keanu Reeves, Rian Johnson, and Rinschs ex-wife Gabby Roses. He described Rinschs original pitch as visionary, and the trailer shown in court demonstrated completed visual effects and elements of body horror.

The initial plan envisioned 13 episodes of four to 14 minutes each. Friedlander proposed shooting additional footage, expanding the story and characters. By September 2019, Rinsch emailed outlining financial dilemmas and suggested either limiting expenditures or continuing to increase the budget. Friedlander, committed to completing the narrative, requested detailed production updates and visited the Budapest set in October 2019 with Netflix executive Mike Posey to assess the situation firsthand.

By February 2020, Rinsch provided a condensed production plan, and Netflix sent $11 million on March 4, 2020, to cover storyboards, designs, art fabrication, crew payments, editing, and other production needs. Despite pandemic-related delays, Friedlander testified that work could have continued. The last material Netflix received was a lavish coffee table book with production photos from 2019.

Judge Jed Rakoff informed jurors that the trial is expected to conclude before the end of next week.

Author: Sophia Brooks