A Hollywood writer-director, Carl Erik Rinsch, has been arrested on charges of defrauding Netflix out of $11 million for a sci-fi show that never aired. Rinsch, best known for directing 47 Ronin, faces charges of wire fraud and money laundering in connection with a scheme to deceive the streaming giant.
Federal prosecutors claim that Netflix initially paid Rinsch $44 million for an unfinished show titled White Horse. However, Rinsch later requested an additional $11 million, claiming it was necessary to complete the production. Instead of using the funds for the show, prosecutors allege Rinsch transferred the money to a personal brokerage account, where he made unsuccessful investments, losing nearly half of the $11 million in two months.
Rinsch then moved the remaining funds into the cryptocurrency market, where he made a profit. He transferred the earnings into a personal bank account and spent approximately $10 million on personal expenses and luxury items. According to prosecutors, his spending spree included $1.8 million on credit card bills, $1 million on legal fees to sue Netflix for more money, $3.8 million on furniture and antiques, $2.4 million on five Rolls-Royces and one Ferrari, and $652,000 on watches and clothing.
Rinsch, 47, was arrested in West Hollywood, California, and appeared in federal court in Los Angeles. He did not enter a plea, only responding to the judge’s questions. When asked if he had read the indictment, he replied, “Not cover to cover,” but confirmed he understood the charges. He was released after agreeing to post a $100,000 bond to guarantee his appearance in court in New York, where the indictment was filed.