Filmmaker Carl Erik Rinsch is on trial for allegedly defrauding Netflix of $11 million intended to complete the sci-fi series “White Horse” (later renamed “Conquest”), which was never finished or aired. Despite Netflix’s initial $61.2 million investment and granting Rinsch final cut privileges, production stalled amid budget overruns and no episodes were completed. Prosecutors claim Rinsch diverted the funds into personal brokerage accounts, lost half on risky stock trades, regained money through cryptocurrency, and spent lavishly on luxury cars and expensive mattresses, while falsely assuring Netflix executives the project was progressing well.

Rinsch faces charges including wire fraud and money laundering, with a potential 90-year sentence, but has pleaded not guilty. His defense may argue that he was in a “state of psychosis” during the relevant period, possibly influenced by prescription stimulants and the pandemic, though they deny insanity. Netflix has already won an $11.8 million civil arbitration against him. The trial, expected to last two weeks, will feature testimony from former Netflix executives, including Cindy Holland, who initially acquired the project.