A Hollywood director known for 47 Ronin, was arrested in West Hollywood, California, on Tuesday for allegedly defrauding Netflix of $11 million intended for a sci-fi series called White Horse.
The charges against Carl Erik Rinsch include wire fraud and money laundering.
Federal prosecutors claim that Netflix initially paid Rinsch around $44 million for the unfinished project, and later, Rinsch requested an additional $11 million to complete production.
However, instead of finishing the show, he allegedly diverted the funds into his brokerage account, where he made a series of investments that lost nearly half of the $11 million in two months.
Rinsch allegedly then transferred the remaining funds into cryptocurrency, where he reportedly made profits. These gains were allegedly funneled into his personal bank account.
Prosecutors say he used approximately $10 million for personal expenses, including luxury purchases such as five Rolls-Royces, one Ferrari, high-end clothing, and furniture, amounting to millions of dollars in expenditures.
Additionally, Rinsch allegedly spent $1.8 million on credit card bills, $1 million on legal fees in an attempt to sue Netflix for more funds, and $652,000 on watches.
Rinsch was arrested and brought to a federal courtroom in Los Angeles, where he appeared shackled and in casual attire.
During the hearing, he acknowledged understanding the charges but did not enter a plea.
The judge set his release on a $100,000 bond, requiring him to appear in future court proceedings in New York, where the indictment was filed.
Rinsch’s attorney, Annie Carney, declined to comment on the case outside the courtroom, stating that she had not yet reviewed the evidence against her client.
Carney described the case as a financial matter, emphasizing that the charges are related to financial misconduct.
