Federal court proceedings have begun against director Carl Rinsch, accused of defrauding Netflix out of millions during the troubled production of his uncompleted series “White Horse.” The high-concept thriller, pitched as a blend of Star Wars, Westworld, and The Matrix, faced major setbacks, prompting Netflix to invest an additional $11 million—funds prosecutors allege Rinsch misused for personal luxury items.

Rinsch, 48, is charged with wire fraud, money laundering, and making a series of illegal transactions. Prosecutors contend he spent the funds on a $740,000 Ferrari, a $340,000 watch, and four luxury mattresses totaling $638,000, among other indulgences. The government describes the case as one of “greed and lies,” asserting Rinsch manipulated Netflix employees and redirected the money through multiple accounts before transferring it to his personal brokerage account for a spending spree.

Netflix executives involved in the series, including Cindy Holland and Peter Friedlander, as well as other witnesses like Rinsch’s ex-wife Gabby Roses, were expected to testify. Friedlander, who moved from Netflix to Amazon MGM Studios, recounted Rinsch’s original pitch, which included five to six short “visionary” episodes. While Rinsch initially envisioned 13 episodes, Friedlander required him to expand the story and incorporate new characters, resulting in additional production demands.

Defense attorney Michael Arthus portrayed Rinsch not as a fraud but as a visionary artist overwhelmed by the challenges of production. Arthus described him as a “luminary and visionary who can breathe new light into a universe that doesn’t exist,” comparing the director to “Vincent van Gogh with a Netflix deal.” The defense argued that the series’ setbacks were largely due to “executive group think” and the unprecedented disruptions caused by the COVID-19 pandemic, rather than criminal intent, suggesting Rinsch prioritized the artistic vision over budgetary constraints.

Evidence presented at trial included emails from Rinsch to Friedlander outlining escalating production issues in September 2019. Rinsch highlighted financial pressures and presented two options: to “protect and survive” by limiting spending or to “forge ahead” and increase the budget. Netflix responded by taking a more hands-on approach, requiring detailed production reports and visiting the Budapest set in October 2019 to assess ongoing challenges.

The $11 million disbursement on March 4, 2020, was intended to cover storyboards, production design, art fabrication, crew payments, editing, and other production costs within a five-week period. According to Friedlander, the last material he received was a lavish coffee table book featuring 2019 production photos—marking the end of substantive updates from the project. Judge Jed Rakoff anticipates the trial will conclude before the end of the week.