California: Hollywood director Carl Erik Rinsch was arrested for allegedly defrauding Netflix of $11 million for an unfinished sci-fi series.
Rinsch, known for directing 47 Ronin, is facing wire fraud and money laundering charges in a federal indictment.
Prosecutors say Netflix initially paid $44 million for his show White Horse but later gave him an additional $11 million.
Rinsch claimed he needed more money to complete the show, but authorities say he used it for personal expenses.
Netflix declined to comment, and it remains unclear whether Rinsch has hired an attorney for his legal defense.
Misuse of Funds
Instead of finishing the series, Rinsch allegedly transferred the extra funds into his personal brokerage account.
He reportedly lost nearly half the money within two months due to unsuccessful investment decisions.
The remaining funds were invested in cryptocurrency, eventually yielding substantial profits, according to prosecutors.
Rinsch then transferred the earnings into his personal bank account before going on a lavish spending spree.
Authorities say he used the funds for extravagant personal expenses, including luxury cars and high-end purchases.
Lavish Spending
Rinsch allegedly spent $10 million on personal items, including $1.8 million to pay off credit card bills.
He reportedly spent $1 million on attorneys to sue Netflix for additional payments related to the show.
His luxury purchases included $3.7 million on furniture and antiques for his personal collection.
Prosecutors say he bought five Rolls-Royces and one Ferrari, totaling $2.4 million in luxury vehicles.
Additionally, he spent $652,000 on watches and designer clothing, according to court documents.
Legal Proceedings
Rinsch, 47, was arrested in West Hollywood and is expected to appear in federal court in California.
His indictment was officially filed in New York, where authorities will continue the legal proceedings.
Netflix has not made any statements regarding the charges or the future of the White Horse project.
Prosecutors claim Rinsch deceived the streaming giant and misused funds intended for content production.
If convicted, he could face significant prison time for wire fraud and money laundering offenses.
Ongoing Investigation
The case highlights concerns about financial accountability in Hollywood’s entertainment industry.
Federal authorities continue to investigate whether others were involved in Rinsch’s alleged fraud scheme.
The charges reflect the Justice Department’s commitment to cracking down on financial crimes in entertainment.
Authorities urge caution when large sums of money are entrusted to creative projects without strict oversight.
Rinsch’s next court hearing will determine further legal actions regarding his alleged fraudulent activities.
