NEW YORK – A Hollywood writer-director faces legal troubles after being accused of swindling $11 million from Netflix in a scheme involving an unfinished sci-fi show. Carl Erik Rinsch, known for directing the film “47 Ronin,” is facing charges of wire fraud and money laundering related to the alleged fraud against the streaming giant. It is still unclear if Rinsch has legal representation as Netflix has chosen not to comment on the matter. Prosecutors claim that Netflix initially paid around $44 million for an unfinished show called “White Horse” from Rinsch. Subsequently, an additional $11 million was provided to him for the completion of the show, which he diverted towards personal investments in cryptocurrency and luxury purchases.
Rather than using the extra funds for the intended production purposes, Rinsch funneled the money into a personal brokerage account, leading to substantial losses through failed investments in just two months. Prosecutors highlight that the filmmaker then shifted the remaining money into the cryptocurrency market, resulting in profits that were eventually transferred to his personal bank account, as outlined in the indictment. Following this, Rinsch indulged in extravagant spending, using approximately $10 million on personal expenses and luxury items. These expenses included $1.8 million on credit card bills, $1 million on legal fees to sue Netflix for more money, $3.7 million on furniture and antiques, $2.4 million on five Rolls-Royces and one Ferrari, and $652,000 on watches and clothing.
Authorities arrested the 47-year-old Rinsch in West Hollywood, where he is set to appear in a federal court in California. The indictment against him was filed in New York. This case serves as a caution against financial misconduct and abuse of trust in the entertainment industry, highlighting the importance of proper financial oversight and accountability in dealings between creators and production companies. The repercussions of such fraudulent activities can be severe, not only impacting the individuals involved but also tarnishing the reputation of the industry as a whole.