A Hollywood writer-director has been arrested on charges of defrauding Netflix out of $11 million for a sci-fi show that never aired.
Carl Erik Rinsch, known for directing the film “47 Ronin,” faces charges of wire fraud and money laundering in connection with what federal prosecutors have described as a scheme to defraud the streaming service.
According to prosecutors, Netflix initially paid approximately $44 million for an unfinished project titled “White Horse.” Rinsch later requested and received an additional $11 million, claiming it was necessary to complete the show.
Instead of using the funds for production, Rinsch allegedly funneled the money to a personal brokerage account, where he made a series of poor investments that resulted in losing nearly half of the $11 million within two months. He then shifted the remaining funds into the cryptocurrency market, ultimately generating a profit, which he transferred into a personal bank account, as stated in the indictment.
Rinsch reportedly spent around $10 million on personal expenses and luxury items, including approximately $1.8 million on credit card payments, $1 million on legal fees to sue Netflix for additional funds, $3.8 million on furniture and antiques, $2.4 million on five Rolls-Royces and one Ferrari, and $652,000 on watches and clothing.
The 47-year-old was arrested in West Hollywood, California, and appeared in federal court in Los Angeles for a preliminary hearing on Tuesday. He was dressed in a turtleneck sweater and jeans, with shackles on his arms and legs. Rinsch did not enter a plea and responded only to the judge’s questions.
When asked if he had read the indictment, he replied, “not cover to cover,” but assured the judge that he understood the charges.
US Magistrate Judge Pedro V. Castillo ordered Rinsch’s release later that day after he agreed to post a $100,000 bond to ensure his appearance in a New York court, where the indictment was filed.
