Hollywood filmmaker accused of swindling Netflix of $11M
Renowned Hollywood director Carl Erik Rinsch, best known for the 2013 action-fantasy film 47 Ronin, has been arrested on charges of fraud and money laundering after allegedly misusing $11 million from Netflix.
According to BBC News, the funds, intended for the development of a sci-fi series titled White Horse, were reportedly diverted toward luxury cars, cryptocurrency investments, and extravagant personal purchases.
Between 2018 and 2019, Netflix provided Rinsch with an initial budget of $44 million to produce White Horse, a futuristic series exploring artificial human clones. However, despite the significant investment, not a single episode was ever completed.
In March 2020, Rinsch persuaded the streaming giant to send an additional $11 million, claiming the original budget was inadequate.
Instead of funnelling the money into production, he allegedly transferred it to personal accounts, where he embarked on a reckless spending spree, according to prosecutors.
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Court documents reveal that within just two months of receiving the extra funding, nearly half of the $11 million had already been spent. Despite haemorrhaging funds, Rinsch allegedly continued assuring Netflix that the project was underway.
According to the U.S. Justice Department, the director splurged on a fleet of Rolls-Royces and a Ferrari, $1.8 million in credit card payments, $3.7 million on high-end furniture and antiques and $933,000 on luxury mattresses and bedding
In addition, prosecutors allege that he funnelled $1 million into legal battles, including a lawsuit against Netflix in hopes of securing even more funding and a divorce settlement.
He also attempted to multiply his wealth by investing a significant portion in cryptocurrency, which resulted in major financial losses, BBC reports.
Erratic behaviour and the downfall
Rinsch’s downward spiral had reportedly been a topic of concern among his associates. A New York Times investigation in 2023 detailed how those close to him observed increasingly bizarre behaviour following his deal with Netflix.
He allegedly claimed to possess the ability to predict lightning strikes, foresee volcanic eruptions, and uncover a hidden “transmission mechanism” for COVID-19.
When brought before a Los Angeles court this week, Rinsch declined to enter a plea. When asked if he had reviewed the 12-page indictment, he reportedly responded, “Not cover to cover.”
The director was released on a $100,000 bail and is expected to stand trial in New York at a later date. If convicted, he faces up to 20 years in prison.
Netflix has declined to comment on the matter.
