A Hollywood writer-director has been arrested and accused of using studio funds aimed at completing a sci-fi series to buy luxury cars, cryptocurrency and fancy bedding for himself. Carl Erik Rinsch, 47, is being charged with federal fraud and money laundering related to $11m he was given by Netflix to create a series called White Horse.
Mr. Rinsch, who is best known for the 2013 film 47 Ronin, declined to enter a plea when appearing in a Los Angeles court on Tuesday. The indictment does not name Netflix, referring to a ‘subscription video on-demand streaming service,’ but Mr. Rinsch’s long-running dispute with Netflix over the failed series has been previously publicized in US media reports.
Prosecutors revealed Netflix initially paid $44 million for Rinsch’s unfinished White Horse. When he requested and additional $11 million to complete the series, the streaming giant approved the funds. But rather than finishing the project, Rinsch allegedly transferred the money to his personal brokerage account, where he lost close to half in failed investments within two months.
As per the indictment, Rinsch proceeded to shifting the remaining funds into cryptocurrency, landing a major profit before withdrawing the earnings into his personal bank account. Federal prosecutors claim he spent nearly $10 million on personal luxuries, including a$1.8 million in credit card payments, $1million in legal fees to sue Netflix for more money, and $3.7 million on high-end furniture and antiques.
It is also alleged that he purchased five Rolls-Royces, one Ferrari, and spent $652,000 on watches and designer clothing.
Rinsch, 47, was arrested in West Hollywood, California, and had an initial court hearing on Tuesday. He appeared in a federal courtroom in Los Angeles in a turtleneck sweater and jeans with shackles on his arms and legs.
He did not enter a plea and spoke only to answer a judge’s questions. When asked if he’d read the indictment against him, he said ‘not cover to cover’ but told the judge he understood the charges.
Netflix declined to comment on the case, and it remains unclear if Rinsch has legal representation.U.S. Magistrate Judge Pedro V. Castillo ordered that he be released later Tuesday after he agreed to post a $100,000 bond to assure, he will appear in court in New York, where his indictment was filed.
The case has sparked discussions about financial oversight in Hollywood and how major streaming platforms manage multi-million-dollar deals.
