Carl Erik Rinsch, a 47-year-old Hollywood director, has been arrested and charged with federal fraud and money laundering after allegedly misusing studio funds meant for a sci-fi series.
Rinsch, best known for directing the 2013 film 47 Ronin, reportedly received $11 million from Netflix to develop White Horse but used the money for personal luxuries instead.
Between 2018 and 2019, Netflix initially allocated $44 million for the series, which focused on artificial human clones.
However, Rinsch failed to produce a single episode.
In March 2020, he convinced Netflix to provide an additional $11 million, claiming the original budget was insufficient.
Prosecutors allege that instead of using the funds for production, he transferred them to personal accounts and engaged in high-risk investments.
Authorities say that within two months of receiving the additional funds, nearly half had already been spent.
Court documents reveal that Rinsch used the money to purchase Rolls-Royces, a Ferrari, expensive furniture, antiques, and nearly $933,000 worth of luxury bedding.
Additionally, he allegedly spent $1.8 million on credit card bills and $1 million on legal fees, including a lawsuit against Netflix and a divorce settlement.
Despite his financial troubles, Rinsch reportedly assured Netflix that the show was progressing well.
However, prosecutors argue that his actions were part of a scheme to defraud the streaming giant.
The U.S. Justice Department noted that his extravagant spending extended to cryptocurrency speculation, further exacerbating his losses.
According to a 2023 New York Times report, Rinsch’s behavior became increasingly erratic after securing the Netflix deal.
He allegedly claimed to predict lightning strikes, volcanic eruptions, and even had theories about a “secret transmission mechanism” for Covid-19.
Appearing in a Los Angeles court on Tuesday, Rinsch declined to enter a plea and admitted he had not read the full 12-page indictment.
He was released on a $100,000 bail and is expected to face trial in New York. If convicted, he could face up to 20 years in prison.
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