A federal trial has commenced against director Carl Rinsch, who stands accused of swindling Netflix out of millions during the production of his uncompleted series, “White Horse.” The project, initially touted as Netflix's next big franchise, faced major production issues, leading to Netflix investing an additional $11 million, which prosecutors allege Rinsch misused for personal luxury purchases.

“White Horse” was pitched to Netflix as a high-concept thriller exploring the emergence of humanoid organic intelligences (OIs) and the human factions determined to eradicate them. Described as a blend of “Star Wars,” “Westworld,” and “The Matrix,” the series garnered significant internal excitement at Netflix. However, these ambitions began to unravel in the fall of 2019 when production encountered severe difficulties. In an attempt to salvage the project, Netflix wired Rinsch an additional $11 million on March 2, 2020, shortly before the COVID-19 pandemic significantly disrupted global productions. Despite this substantial investment, Netflix reportedly never received any further footage or material for “White Horse” and ultimately wrote off its entire investment in the show.

Over five years later, Rinsch, 48, faces charges of wire fraud, money laundering, and making a series of illegal transactions. Prosecutors contend that Rinsch leveraged the $11 million for personal gain, allegedly purchasing a $740,000 Ferrari, a $340,000 watch, and four luxury mattresses totaling $638,000, among other expenditures. The prosecution characterized the case as one of “greed and lies,” asserting that Rinsch “saw an opportunity to make a killing” in the stock market during the pandemic's onset and “deceived” multiple Netflix employees to secure the funds. They allege he routed the money through various bank accounts before transferring it to his personal brokerage account, subsequently embarking on a “spending spree.” The government plans to trace the money through testimony from witnesses Rinsch allegedly deceived, including his financial manager, personal assistant, bookkeeper, and editor, as well as several Netflix executives like Cindy Holland and Peter Friedlander.

Defense attorney Michael Arthus presented an alternative narrative, portraying Rinsch not as a criminal but as a visionary artist entangled in a contract dispute. Arthus lauded Rinsch as a “luminary and visionary who can breathe new light into a universe that doesn’t exist,” but conceded that he might have been overwhelmed by the responsibilities of a producer. The defense argued that “the artist Carl valued the story more than the producer Carl worried what it would cost” and attributed the project’s derailment to “executive group think” and the unprecedented challenges posed by the pandemic. Arthus concluded by likening Rinsch to “Vincent van Gogh with a Netflix deal struggling with his benefactor,” maintaining that while Rinsch “couldn’t quite deliver, that doesn’t make him a fraud.”

Peter Friedlander, who recently moved from Netflix to Amazon MGM Studios, was the first witness to testify. He, along with Cindy Holland and producers like Keanu Reeves, Rian Johnson, and Gabby Roses (Rinsch’s ex-wife), were instrumental in acquiring “White Horse.” Friedlander recounted Rinsch’s initial presentation, which included five to six “visionary” short episodes. The trial included a viewing of the project's trailer, featuring Cronenberg-esque body horror and completed visual effects. While Rinsch's original pitch detailed 13 episodes with short runtimes, Friedlander devised a plan requiring Rinsch to expand the story and incorporate new characters, necessitating significant new footage.

By September 9, 2019, Friedlander received an email from Rinsch highlighting production problems, stating, “The problem, in this case, is a simple one of money. Which is a reality I have to face. And manage.” Rinsch presented two options: to “protect and survive” by limiting financial exposure or to “forge ahead” and increase the budget. Friedlander, committed to the series' vision and franchise potential, saw the show at a “crisis point,” believing that ending it prematurely would lead to an “unsatisfying customer experience.” He subsequently adopted a more hands-on approach, requiring Rinsch to submit detailed production reports. In October 2019, Friedlander, accompanied by another Netflix executive, Mike Posey, visited the troubled Budapest set to “be thought partners and better understand the shooting challenges.”

By February 2020, emails showed Rinsch outlining a strategy to condense the production timeline and bring the project back on track. On March 4, 2020, the $11 million was disbursed to Rinsch, intended for storyboards, production designs, fabrication of art/costumes, key crew and artist payments, editing existing material, and other production costs within a five-week period. Friedlander asserted that Rinsch could have continued working on the project despite the pandemic-induced filming pauses for other productions. Around that time, Rinsch gifted Friedlander a lavish coffee table book featuring production photos from the 2019 shoot – the last material Friedlander ever received regarding “White Horse.” Judge Jed Rakoff anticipates the trial to conclude before the end of the upcoming week.