Hollywood Director Arrested for Allegedly Swindling $11 Million from Netflix

Following allegations that he embezzled $11 million from Netflix for personal indulgences, Hollywood director Rinsch was charged with wire fraud.

On Tuesday, a Hollywood writer-director was arrested on allegations that he conned Netflix out of $11 million for a sci-fi series that never aired, using the money for cryptocurrency investments and a string of extravagant purchases that included a Ferrari and a fleet of Rolls-Royces.

Perhaps best known for directing the movie “47 Ronin,” Carl Erik Rinsch has been charged with wire fraud and money laundering in connection with a conspiracy to swindle the streaming behemoth, according to federal authorities.

Prosecutors claimed that after paying roughly $44 million to acquire Rinsch’s incomplete show “White Horse,” Netflix later gave him an additional $11 million after he claimed he needed the extra money to finish the project.

Prosecutors claim that instead of using the additional funds to complete production, Rinsch covertly moved them to a personal brokerage account and used them for a string of unsuccessful investments that cost him over half of the $11 million in just two months.

According to an indictment, the filmmaker subsequently invested the remaining funds in the cryptocurrency market, which turned out to be a wise decision. Rinsch eventually moved the profits into a personal bank account.

From there, Rinsch spent roughly $10 million on luxury goods and personal expenses, including $1.8 million on credit card bills, $1 million on attorneys to sue Netflix for additional funds, $3.8 million on antiques and furniture, $2.4 million on five Rolls-Royces and one Ferrari, and $652,000 on clothing and watches, according to prosecutors.

The initial court hearing for Rinsch, 47, who was detained in West Hollywood, California, took place on Tuesday.

He showed up in a Los Angeles federal courthouse wearing pants and a turtleneck sweater, his arms and legs shackled. He spoke solely to respond to the judge’s questioning and did not enter a plea. “Not cover to cover,” he replied when asked if he had read the indictment against him, but he assured the judge that he was aware of the charges.

He agreed to post a $100,000 bond to guarantee that he would appear in court in New York, where his indictment was filed, and US Magistrate Judge Pedro V. Castillo granted his release later Tuesday.

Annie Carney, his recently hired lawyer, refused to speak outside of court. During the hearing, she stated that she had not yet viewed the evidence used by the prosecution against Rinsch. “The allegations in this case are purely financial,” she stated in reference to the conditions of his release.

The date of Rinsch’s court appearance in New York was still pending.
Netflix chose not to respond.