TLDR

Filmmaker Carl Erik Rinsch charged with stealing $11M from Netflix for unfinished series “White Horse”/”Conquest”
Rinsch allegedly used Netflix funds for stock trading, cryptocurrency, and luxury purchases
Instead of producing the series, Rinsch bought five Rolls-Royces, a Ferrari, expensive furniture, and luxury items
Federal prosecutors charged Rinsch with wire fraud and money laundering, with possible 20-year sentences
Netflix previously won an $8.8 million arbitration case against Rinsch last year

Federal prosecutors have arrested and charged filmmaker Carl Erik Rinsch with fraud after he allegedly misused $11 million provided by Netflix for a science fiction TV series that was never completed. The 47-year-old director of “47 Ronin” was arrested on March 18, 2025, facing serious charges that could result in decades of prison time if convicted.

According to the indictment unsealed in a Manhattan federal court, Netflix initially paid Rinsch’s company $44 million in 2018 and 2019 to produce a science fiction series. The show, initially called “White Horse” and later renamed “Conquest,” was about artificial humans.

In March 2020, Rinsch claimed the initial amount was “not sufficient” to complete the series. Netflix then provided an additional $11 million to help finish the production.

Instead of using the money for production costs, prosecutors allege Rinsch transferred the funds through several bank accounts before consolidating them in a personal brokerage account. He then used the money for personal and speculative investments.

Crypto, Risky Trades & Spending Spree

The Department of Justice claims Rinsch made “extremely risky” trades, including call options on a biopharmaceutical company. These trades were unsuccessful, causing him to lose over $5.5 million of Netflix’s money in less than two months.

While losing Netflix’s funds, Rinsch reportedly assured the streaming service that the show was “moving forward really well.” However, no episodes of the series were ever delivered to Netflix.

After his stock market losses, Rinsch turned to cryptocurrency trading in February 2021. Prosecutors say he had better luck with crypto, making several million dollars that he then spent on luxury items and personal expenses.

The spending spree was extensive and lavish. Rinsch allegedly spent $3.787 million on furniture and antiques, including approximately $638,000 for two mattresses and $295,000 on luxury bedding and linens.

He also purchased five Rolls-Royces and one Ferrari for approximately $2.417 million. Additional spending included $652,000 on watches and luxury clothing items.

Rinsch reportedly spent $1.787 million on credit card bills. He also used about $1.073 million for legal fees to sue Netflix for more money and to cover costs related to his divorce.

Another $395,000 was spent staying at the Four Seasons hotel and various luxury rental properties. All this spending occurred while the TV show Rinsch was supposed to be making remained unfinished.

The arrest comes less than a year after an arbitrator awarded Netflix $8.8 million in damages. Rinsch had initiated the arbitration, claiming Netflix had breached their contract and owed him at least $14 million more. However, former Los Angeles Superior Court Judge Rita Miller ruled that none of Rinsch’s purchases were necessary for the production.

Cancelled Show and $55 Million Write-Off

Netflix eventually canceled the show in early 2021 and reportedly wrote off over $55 million in costs related to the failed production. A spokesperson for Netflix has declined to comment on the case.

The federal charges against Rinsch include one count of wire fraud and one count of money laundering, each carrying a maximum sentence of 20 years in prison. He also faces five counts of engaging in monetary transactions in property derived from specified unlawful activity, each carrying a maximum sentence of 10 years.

The case is being prosecuted by the Complex Frauds and Cybercrime unit. Rinsch was arrested in West Hollywood, California, and his case has been assigned to New York federal court Judge Jed Rakoff.

According to reports, the series was highly sought after, with a competitive auction before Netflix acquired it. Despite Rinsch being a relatively unknown filmmaker with only one major movie credit, Netflix outbid Amazon, paying over $61 million for the project in 2018 when it was being overseen by then-Netflix executive Cindy Holland.

“As alleged, Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating,” said acting U.S. Attorney Matthew Podolsky in a statement. “But that was fiction.”

FBI Assistant Director Leslie Backschies added: “Carl Rinsch allegedly stole more than $11 million from a prominent streaming platform to finance lavish purchases and personal investments instead of completing a promised television series. The FBI will continue to reel in any individual who seeks to defraud businesses.”

It is unclear if Rinsch has legal representation at this time. A talent agent for Rinsch did not immediately respond to requests for comment, and his lawyer, Annie Carney, declined to comment outside court according to the Associated Press.

The post Stocks, Crypto & Luxury Cars: Netflix Filmmaker Charged with Misusing $11 Million Production Funds appeared first on CoinCentral.

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Filed under: News - @ March 19, 2025 9:57 am