A Hollywood writer-director was arrested Tuesday on charges of defrauding Netflix out of $11 million for a sci-fi show that never aired, instead funneling the money into cryptocurrency investments and a series of lavish personal purchases, including a fleet of Rolls-Royces and a Ferrari.
Carl Erik Rinsch faces fraud and money laundering charges
Carl Erik Rinsch, best known for directing “47 Ronin,” has been charged with wire fraud and money laundering over what federal prosecutors describe as a scheme to defraud the streaming giant.
Prosecutors said Netflix initially paid $44 million to acquire an unfinished show titled “White Horse” from Rinsch but later granted him another $11 million after he claimed he needed additional funding to complete production.
Rather than using the money to wrap up the project, Rinsch allegedly transferred the funds to a personal brokerage account, where he made a series of failed investments, losing nearly half the money within two months, according to prosecutors.
Rinsch spent millions on luxury items
The director then poured the remaining money into cryptocurrency, which proved to be profitable. Prosecutors allege that Rinsch later transferred his earnings into a personal bank account, using it for extravagant personal expenses.
According to the indictment, Rinsch spent approximately:
- $1.8 million on credit card bills
- $1 million on lawyers to sue Netflix for more money
- $3.8 million on furniture and antiques
- $2.4 million on five Rolls-Royces and one Ferrari
- $652,000 on watches and clothing
Rinsch appears in court, released on bond
Rinsch, 47, was arrested in West Hollywood, California, and appeared in a Los Angeles federal courtroom on Tuesday, wearing a turtleneck sweater and jeans, with shackles on his arms and legs. He did not enter a plea and spoke only to answer a judge’s questions.
When asked if he had read the indictment, he replied, “not cover to cover” but stated he understood the charges.
US Magistrate Judge Pedro V. Castillo ordered his release later that day after Rinsch agreed to post a $100,000 bond to ensure his appearance in New York, where the indictment was filed.
His attorney, Annie Carney, declined to comment outside court, stating during the hearing that she had not yet reviewed the prosecution’s evidence against her client. “The allegations in this case are purely financial,” she said while discussing the terms of his release.
Netflix declines to comment
Rinsch’s court date in New York has not yet been scheduled. Netflix declined to comment on the case.