In one of Hollywood's most bizarre scandals, director Carl Erik Rinsch was convicted on December 11, 2025, of defrauding Netflix out of $11 million intended for his ambitious sci-fi series "Conquest" (originally titled "White Horse"). The jury found him guilty on all counts - wire fraud, money laundering, and unlawful monetary transactions - after a swift one-week trial in Manhattan federal court.
Facing up to 90 years in prison (though likely far less), Rinsch's downfall stems from diverting funds into cryptocurrency speculation and a lavish spending spree, including five Rolls-Royces, a Ferrari, luxury watches, and even handmade mattresses costing nearly $1 million.
Netflix had poured a total of $55 million into the project from 2018 onward, outbidding rivals like Amazon in a heated auction. Executives were captivated by Rinsch's early pitch: short teaser episodes and a trailer featuring a dystopian world of human clones and artificial beings.
Former Netflix VP Cindy Holland testified that the footage was "stunning" and "visionary," unlike anything she'd seen, prompting the massive investment despite Rinsch's only prior feature being the critically panned 47 Ronin (2013).
The Footage That Sold a Dream
What hooked Netflix? During the trial, prosecutors and defense presented clips from the unfinished series as evidence.
The preliminary episodes - shot in Brazil, Uruguay, and Hungary - depict a haunting, Cronenberg-inspired aesthetic: organic intelligent beings, eerie auctions for life formulas, and visceral body horror elements.
One trailer ends on a cliffhanger, showcasing polished visual effects that stunned executives like Peter Friedlander, who called it "something I had never seen before." Rinsch's defense argued these efforts proved his intent was genuine production, not fraud - claiming the luxury cars were "props" for the show.
Yet, the jury wasn't swayed. Bank records showed Rinsch funneling the final $11 million wire (sent in March 2020 amid pandemic delays) into personal accounts, losing half on failed stock options before recouping via crypto gains - and spending profits on extravagances.
Netflix canceled the project in 2021, writing off the full amount after no complete episodes materialized.
A Cautionary Tale for Streaming's Blank-Check Era
Rinsch's erratic behavior - claiming to predict earthquakes and discovering COVID secrets - contributed to the fallout, alongside crew interventions urging rehab. Netflix won a separate $12 million arbitration in 2024 (unpaid), and now owns the existing footage.
The director expressed mixed feelings post-verdict, noting satisfaction that "a piece of his creation" was seen - even if only by jurors. Netflix has no plans to release or complete "Conquest," but in the internet age, leaks could spark cult interest. These fragments hint at a bold, unconventional vision: a slow-burn thriller about humanity's intersection with artificial life.
As streaming giants tighten belts post-boom, Rinsch's case marks the end of unchecked creative freedom. What began as a $55 million bet on innovation became a criminal conviction - but those courtroom glimpses suggest the lost series might have been something extraordinary. If footage ever surfaces publicly, it could redeem Rinsch's legacy... or cement it as Hollywood's most expensive phantom.
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Author: Slava Vasipenok
Founder and CEO of QUASA (quasa.io) - Daily insights on Web3, AI, Crypto, and Freelance. Stay updated on finance, technology trends, and creator tools - with sources and real value.
Innovative entrepreneur with over 20 years of experience in IT, fintech, and blockchain. Specializes in decentralized solutions for freelancing, helping to overcome the barriers of traditional finance, especially in developing regions.
