A Hollywood writer-director has been taken into custody on charges of defrauding Netflix of $11 million for a sci-fi show that was never broadcast. Instead, the funds were allegedly redirected toward cryptocurrency investments and extravagant purchases, including multiple Rolls-Royces and a Ferrari.
Carl Erik Rinsch, known for directing “47 Ronin,” faces accusations of wire fraud and money laundering in a scheme purportedly devised to defraud the streaming platform. Prosecutors claim that Netflix initially paid approximately $44 million for an unfinished show, “White Horse,” and later provided an additional $11 million after Rinsch indicated more funds were necessary to complete the project.
Instead of completing the show, the additional money was allegedly transferred to Rinsch’s personal brokerage account. Prosecutors state that he engaged in a series of failed investments, which halved the original amount within two months. The remaining money was reportedly invested in the cryptocurrency market, where it eventually yielded profits that Rinsch transferred into a personal bank account.
The indictment suggests that Rinsch then spent about $10 million on personal expenses and luxury goods, including $1.8 million on credit card bills, $1 million on legal fees in an attempt to secure more money from Netflix, $3.8 million on furniture and antiques, $2.4 million for purchasing five Rolls-Royces and one Ferrari, and $652,000 on watches and clothing.
Rinsch, 47, was apprehended in West Hollywood, California, and attended an initial court hearing in Los Angeles on Tuesday. He was dressed in a turtleneck sweater and jeans, with shackles on his arms and legs. During the hearing, he did not enter a plea, speaking only to respond to the judge’s inquiries. When asked if he had read the indictment, he mentioned he understood the charges but had not thoroughly reviewed the document.
U.S. Magistrate Judge Pedro V. Castillo approved Rinsch’s release later that day on a $100,000 bond, ensuring his court appearance in New York, where the indictment was filed. Rinsch’s newly appointed attorney, Annie Carney, refrained from commenting outside the courtroom. During the hearing, she stated she had not yet reviewed the evidence against Rinsch and noted that the allegations were strictly financial.
A court date in New York for Rinsch has not been scheduled. Netflix has chosen not to comment on the case. This report was initially published on Fortune.com.
