Federal authorities have accused Hollywood director Carl Erik Rinsch of wire fraud and money laundering, charging that he used $11 million from Netflix for the production of a science fiction series that it was not for.
Rinsch, whose credits include the direction of “47 Ronin,” was taken into custody in West Hollywood and made an initial appearance in federal court, at which he was released on a $100,000 bond to await further proceedings.
Netflix in 2018 committed to funding Rinsch’s “White Horse” project, later dubbed “Conquest,” with an estimated $44 million. The show was planned as a flagship science fiction series for Netflix.
Rinsch asked for the extra $11 million, claiming unforeseen production expenses. Prosecutors state that rather than using these funds for the show, Rinsch transferred them into individual brokerage accounts.
The indictment alleges that Rinsch engaged in high-risk pursuits—such as stock options and cryptocurrencies.
These investments had cost him hefty losses, losing about half of the $11 million in just two months; nonetheless, Rinsch kept on spending like a madman, acquiring extravagant cars-a total of five Rolls-Royces and a Ferrari—expensive furniture, antiques, and other personal items.
By early 2021, Netflix had aborted the project “Conquest” due to resource stagnation and funds misappropriation. Rinsch was later ordered by the arbitration to refund almost $14 million to Netflix, as the expenses were not related to the production.
Rinsch is now charged with one count of wire fraud and one count of money laundering, each carrying a potential prison sentence of up to 20 years, plus five counts of conducting monetary transactions involving criminally derived property, each carrying up to a 10-year jail term.
This case highlights the significance of financial control in big-ticket entertainment ventures and is a reminder of the danger of mismanagement of production monies.
