Carl Erik Rinsch, a Hollywood writer-director known for his work on the film “47 Ronin,” was arrested on Tuesday on federal charges of wire fraud and money laundering, The Associated Press reports.
He is accused of defrauding Netflix out of $11 million intended for the completion of a sci-fi show that never aired.
Federal prosecutors allege that Rinsch received approximately $44 million from Netflix for the rights to an unfinished show titled “White Horse.” He later requested an additional $11 million, claiming it was necessary to complete the project.
According to the indictment, Rinsch allegedly diverted the extra funds to a personal brokerage account. He then made a series of unsuccessful investments that resulted in a loss of approximately half of the $11 million within two months.
Prosecutors further allege that Rinsch subsequently invested the remaining funds in the cryptocurrency market, which proved to be profitable. He then allegedly transferred the earnings into a personal bank account.
Authorities claim that Rinsch spent approximately $10 million on personal expenses and luxury items. This spending spree reportedly included $1.8 million on credit card bills, $1 million on legal fees to sue Netflix for additional funds, $3.8 million on furniture and antiques, $2.4 million on five Rolls-Royces and one Ferrari, and $652,000 on watches and clothes.
Rinsch, 47, was arrested in West Hollywood, California, and appeared in federal court in Los Angeles on Tuesday. He did not enter a plea but acknowledged understanding the charges against him.
US Magistrate Judge Pedro V. Castillo ordered Rinsch’s release on a $100,000 bond, contingent on his appearance in court in New York, where the indictment was filed.
Rinsch’s newly appointed attorney, Annie Carney, declined to comment on the prosecution’s evidence, stating that she had not yet reviewed it. She characterized the allegations as “purely financial” during the hearing.
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