NEW YORK — A filmmaker well-known in Hollywood was taken into custody on Tuesday under allegations of orchestrating a fraudulent scheme that embezzled $11 million from Netflix for a science fiction series that never saw the light of day. Instead, the funds were reportedly funneled into cryptocurrency ventures and extravagant personal acquisitions, such as luxury cars including Rolls-Royces and a Ferrari.
Renowned for directing “47 Ronin,” Carl Erik Rinsch is facing charges of wire fraud and money laundering as federal prosecutors claim he was involved in a plot to deceive the streaming service. Initial reports from prosecutors indicated that Netflix invested approximately $44 million in a show being developed by Rinsch, known as “White Horse,” with hopes of completion. However, Rinsch requested an additional $11 million, citing a need for further resources to finish the project.
Rather than utilizing the additional funds to complete production, court documents suggest that Rinsch discreetly diverted the finances to a private brokerage account. Within just two months, he made a series of unsuccessful investments, losing nearly half of the new influx of money.
As the financial escapade continued, Rinsch allegedly plunged the remaining amount into cryptocurrencies. This strategy turned out to be lucrative, allowing Rinsch to subsequently transfer the profits into his personal bank account. From this account, he allegedly embarked on a spending spree, expending around $10 million on personal luxury items. This splurge, as detailed by prosecutors, included approximately $1.8 million settled through credit card payments, $1 million on legal fees aimed at pursuing further funds from Netflix, $3.8 million splurged on high-end furniture and antiques, along with a stunning $2.4 million engrossed in acquiring five Rolls-Royces and a Ferrari, not to mention $652,000 spent on opulent watches and clothing.
Rinsch was apprehended in West Hollywood, California, and attended an initial court hearing in Los Angeles on Tuesday. Present in a turtleneck sweater and jeans, with shackles affixed to his arms and legs, he refrained from entering a plea and only responded to questions posed by the judge. When queried if he had read the indictment thoroughly, he replied that he had not read it “cover to cover” but asserted he comprehended the charges levied against him.
U.S. Magistrate Judge Pedro V. Castillo ruled that Rinsch could be released the same day on agreeing to post a $100,000 bond, guaranteeing his attendance in a New York court where the indictment has been filed. Meanwhile, his newly appointed legal representative, Annie Carney, refrained from making comments outside the courtroom, acknowledging during the proceedings that she had yet to review the evidence presented by the prosecution.
Rinsch’s court appearance in New York remains unscheduled. As the situation unfolds, Netflix has opted not to provide any statements on the matter.
