A Manhattan jury recently found Hollywood film director Carl Rinsch guilty of defrauding Netflix of $11 million. The case is regarded as one of the most significant incidents of financial misconduct in Hollywood in recent years.
Linshi is famous for directing the 2013 movie "47 Ronin". In 2018, he was commissioned by Netflix to produce the science fiction series "Conquest" (formerly known as White Horse). Netflix has invested US$44 million in development. In 2020, Linshi claimed that an additional US$11 million was needed to complete the production, and Netflix agreed to fund it, but he transferred the funds through multiple bank accounts and finally transferred them to his personal brokerage account, which was not used for the production of the series.
Prosecutors traced the flow of funds through bank records, brokerage statements and digital forensics and found that Linshi first lost half of his money in two months through speculation such as stock options, and then turned to cryptocurrency investments. He also spent the remaining money on luxury purchases, including $3.3 million to buy furniture, antiques and mattresses, $2.4 million to buy a red Ferrari and five Rolls-Royces, $1.7 million to pay off credit card bills, and $387,000 to buy Swiss watches. These transactions all have credit card and car purchase records.
Linshi had previously increased his $4 million Dogecoin investment to $27 million in 2021, and then squandered $8.7 million on luxury goods. The forensic accountant hired by his ex-wife confirmed this expenditure. Linsch denied the charges, but within hours a jury found him guilty of one count of wire fraud, one count of money laundering and five counts of unlawful dealing in property.
Netflix canceled "Conquer" in 2021 because Linsch's company failed to reach production milestones, writing off a total loss of US$55 million. Linsch will face up to 90 years in prison, and sentencing is scheduled for April 17, 2026.