A Hollywood writer-director was arrested Tuesday for allegedly defrauding Netflix of $11 million intended for a sci-fi series that never aired, instead using the funds for cryptocurrency investments and extravagant purchases, including a fleet of Rolls-Royces and a Ferrari.
Carl Erik Rinsch, best known for directing 47 Ronin, has been charged with wire fraud and money laundering in an alleged scheme to defraud Netflix, federal prosecutors announced.
According to prosecutors, Netflix initially paid Rinsch approximately $44 million for an unfinished sci-fi series titled White Horse. However, he later requested an additional $11 million, claiming it was needed to complete production.
Instead of using the funds to finish the show, Rinsch allegedly transferred the money to a personal brokerage account, where he made a series of failed investments that lost nearly half of it within two months. Prosecutors say he then moved the remaining funds into cryptocurrency, later cashing out the profits into his personal bank account.
Prosecutors say Rinsch then went on a lavish spending spree, using approximately $10 million for personal expenses and luxury items. This included $1.8 million to pay off credit card bills, $1 million on legal fees to sue Netflix for more money, $3.8 million on furniture and antiques, $2.4 million to purchase five Rolls-Royces and a Ferrari, and $652,000 on high-end watches and clothing.
The initial court hearing for Rinsch, 47, who was detained in West Hollywood, California, took place on Tuesday.
Rinsch, 47, appeared in a federal courtroom in Los Angeles wearing a turtleneck sweater and jeans, with shackles on his arms and legs. He did not enter a plea and spoke only to answer the judge’s questions. When asked if he had read the indictment, he responded, “not cover to cover” but confirmed that he understood the charges.
U.S. Magistrate Judge Pedro V. Castillo ordered his release later that day after Rinsch agreed to post a $100,000 bond, ensuring his appearance in a New York court, where the indictment was filed.
His newly appointed attorney, Annie Carney, declined to comment outside the courtroom. During the hearing, she stated that she had not yet reviewed the prosecution’s evidence and noted that “the allegations in this case are purely financial.”
As of now, Rinsch’s court date in New York has not been scheduled.
