"Our objective today is to figure out the nature of this project and what we must do to contain it."
The line is from the trailer to "White Horse," which got its unofficial debut on Tuesday at the federal trial of director Carl Rinsch, who is accused of swindling Netflix out of millions in the course of the boondoggle production.The show, which was never completed, was pitched to the streamer as a high-concept thriller about the rise of humanoid OI's (organic intelligences) and the human factions determined to destroy them. Described as a mix of "Star Wars," "Westworld" and "The Matrix," the series was once touted by Netflix execs as their next big franchise.But those dreams faltered when the big-budget series began to face major production issues in the fall of 2019. Netflix tried to solve the problems by sending Rinsch an additional $11 million. That was March 2, 2020 — just before the pandemic disrupted nearly every production. Netflix never saw any additional footage or material for "White Horse" and ultimately wrote off its entire investment.Over five years later, Rinsch, 48, is facing many years behind bars if convicted of wire fraud, money laundering and making a series of illegal transactions. The "47 Ronin" filmmaker is alleged to have used the $11 million for his own benefit, buying a $740,000 Ferrari, a $340,000 watch and four luxury mattresses totaling $638,000, among other purchases.
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"This is a case about greed and lies," the prosecutor told the jury, saying Rinsch "saw an opportunity to make a killing" in the stock market at the start of the pandemic and "deceived" multiple employees at Netflix to get the $11 million. "And Netflix paid because they continued to believe in the project."
Prosecutors say Rinsch routed the money through multiple bank accounts before moving it into his personal brokerage account. He then "went on a spending spree," they alleged.
The government told jurors they'll "be able to follow the money" through testimony from witnesses Rinsch allegedly deceived, including his financial manager, personal assistant, bookkeeper and editor. Several Netflix executives, including Cindy Holland, who is now head of streaming at Paramount, are also expected to take the stand.
Defense attorney Michael Arthus offered a more favorable portrayal in his opening statement, painting Rinsch as an artist embroiled in a contract dispute — not a criminal. Arthus called him a "luminary and visionary who can breathe new light into a universe that doesn't exist" — but suggested he was in over his head as a producer.
"The artist Carl valued the story more than the producer Carl worried what it would cost," Arthus said.
The lawyer also blamed "executive group think" and the pandemic for pushing the project off the rails.
"He was Vincent van Gogh with a Netflix deal struggling with his benefactor," Arthus concluded. "This is the story of a creative genius… He couldn't quite deliver, but that doesn't make him a fraud."
Rinsch scribbled notes in a yellow legal pad during opening statements.
Peter Friedlander, whorecently leftNetflix tobecomehead of global television at Amazon MGM Studios, was the first witness to testify. He and Holland were the two main execs who acquired "White Horse," alongside producers Keanu Reeves, Rian Johnson and Gabby Roses, who is Rinsch's ex-wife. He testified about the project's initial presentation, saying Rinsch brought him five to six short episodes that were "visionary." The trailer was played for the jury, which featured Cronenberg-esque body horror and finished visual effects.
While Rinsch's original pitch outlined 13 episodes with runtimes of four to 14 minutes, Friedlander set forward a plan to shoot a significant amount of new footage, requiring Rinsch to expand his story and add new characters into the mix. On Sept. 9, 2019, he received an email outlining production problems.
"The problem, in this case, is a simple one of money," Rinsch wrote. "Which is a reality I have to face. And manage."
Rinsch outlined two options: to "protect and survive" and limit financial exposure or "forge ahead" and continue to increase the budget. Friedlander was committed to the vision for the series and its potential as a franchise. "The show was at a crisis point at this point," he said on the stand. "We were investing in this to tell the entire story… To end it right before the end would create a terrible, unsatisfying customer experience."
Friedlander took a more hands-on approach, directing Rinsch to submit detailed production reports going forward. He flew to the troubled Budapest set in October 2019 with another Netflix executive, Mike Posey. Reflecting on the experience, he said, "We wanted to be thought partners and better understand the shooting challenges."
In February 2020, emails showed that Rinsch outlined a roadmap to condense the production timeline and get the project back on track. On March 4, 2020, he was sent $11 million to spend on storyboards, production designs, fabrication of art/costumes, pay or play on key crew and artists, editing of existing material and other production costs in a five-week period. Although the pandemic paused a lot of filming for various projects, Friedlander asserted that Rinsch could've continued working on the project.
Around that time, Rinsch gifted Friedlander a lavish coffee table book with production photos of the 2019 shoot. It was the last material on "White Horse" Friedlander ever received.
Judge Jed Rakoff told jurors he expects to be wrapped before the end of next week.
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