Additional Coverage:
- 5 Rolls-Royces and $638k in mattresses: How prosecutors say director Carl Rinsch ripped off Netflix and went spending (businessinsider.com)
Hollywood Director Accused of Defrauding Netflix, Funding Lavish Lifestyle with Crypto Profits
Carl Erik Rinsch, director of the 2013 film “47 Ronin,” is facing federal charges of wire fraud and money laundering. Prosecutors allege Rinsch scammed Netflix out of $11 million, which he then funneled into cryptocurrency investments and used the subsequent profits to purchase luxury items.
According to a 12-page indictment filed in Manhattan federal court, Netflix (identified as “Streaming Company-1”) paid Rinsch $44 million between 2018 and 2019 for a sci-fi series titled “White Horse.” The show, about a scientist who creates super-intelligent clones, was never completed.
In 2020, Rinsch reportedly requested and received an additional $11 million from Netflix to finish the project. Prosecutors claim he promptly transferred these funds to his personal accounts and engaged in risky securities trading, losing over half of the money. Despite this, Rinsch allegedly assured Netflix that the show was progressing well.
The indictment further states that Rinsch transferred the remaining funds into a cryptocurrency exchange account. His investments, including Dogecoin, reportedly yielded substantial returns, turning $4 million into nearly $27 million.
Rinsch then allegedly used these profits to acquire five Rolls-Royces, a Ferrari, luxury watches, high-end furniture, and even two expensive mattresses. He also reportedly spent $1 million on legal fees in a lawsuit against Netflix.
Rinsch faces a maximum sentence of 90 years in prison. He was arrested in California on Tuesday.
An attorney for Rinsch did not respond to requests for comment, and Netflix declined to comment. Last year, an arbitrator ruled in Netflix’s favor, ordering Rinsch to pay $8.8 million in damages.