Netflix executives were initially captivated in 2018 by early footage of a sci-fi project titled 'White Horse', created by director Carl Rinsch.
Former Netflix originals chief Cindy Holland testified that she read the script at Keanu Reeves’ home and found both the script and footage impressive.
Rinsch had previously directed Reeves in 47 Ronin and presented himself as a visionary capable of building a major franchise.
Netflix agreed to fund the project, committing $44 million for roughly 13 short episodes totalling about 120 minutes.
The company later approved an additional $11 million in March 2020 to help complete production.
White Horse was never finished and ultimately became the subject of a criminal case in Manhattan federal court.
On Thursday, a jury found Rinsch guilty of defrauding Netflix.
Prosecutors said Rinsch used the additional $11 million on luxury purchases rather than completing the series.
The project depicted a world where artificially created “Organic Intelligence” beings formed their own societies after being rejected by humans.
Netflix had granted Rinsch final cut privileges, giving him full creative control despite his previous box office failure.
During the trial, jurors viewed a trailer and six preliminary episodes created before Netflix’s investment.
Former Netflix executive Peter Friedlander said the early visuals were unlike anything he had seen.
Prosecutors argued Rinsch abandoned the project in 2019 after running out of funds.
They said he misled Netflix into releasing more money under false pretences.
Rinsch’s defence claimed the payment was meant to reimburse cost overruns he personally covered.
His lawyers argued he continued developing concept art through 2021.
Prosecutors dismissed the artwork as insufficient and unrelated to completing the first season.
One prosecutor described a castle booking as “a $30,000 down payment on an $11 million fraud,” the court heard.
The case also focused on Rinsch’s purchase of multiple Rolls-Royces.
Rinsch claimed the vehicles were intended for scenes in the show.
Prosecutors countered that insurance records listed the cars as personal purchases.
“It would make no sense to buy five Rolls-Royces for a few scenes,” Assistant US Attorney David Markewitz said.
Shortly before the verdict, Rinsch expressed appreciation that journalists had watched his early episodes.