On Tuesday, a Hollywood writer-director was arrested on allegations that he embezzled $11 million from Netflix for a science fiction series that never aired, using the money for cryptocurrency investments and a string of extravagant purchases that included a Ferrari and a fleet of Rolls-Royces.
Perhaps most famous for directing the movie “47 Ronin,” Carl Erik Rinsch has been charged with wire fraud and money laundering in connection with a conspiracy to swindle the streaming behemoth, according to federal authorities.
It is unclear if Rinsch has hired an attorney. Netflix declined to comment.
Prosecutors claimed that after paying roughly $44 million to acquire Rinsch’s incomplete show “White Horse,” Netflix later gave him an additional $11 million after he claimed he needed the extra money to finish the project.
According to authorities, Rinsch secretly moved the additional funds to a personal broking account instead of utilising them to complete production. There, he made a string of unsuccessful investments that cost him roughly half of the $11 million in just two months.
The remaining funds were then invested in the cryptocurrency market, which turned out to be a wise choice. Rinsch eventually moved the profits into a personal bank account, according to the indictment.
Prosecutors claim that Rinsch went on a spending spree that cost him roughly $10 million for personal expenses and luxury goods, including $1.8 million for credit card bills, $1 million for attorneys to sue Netflix for additional funds, $3.7 million for antiques and furniture, $2.4 million for five Rolls-Royces and one Ferrari, and $652,000 for clothing and watches.
According to officials, Rinsch, 47, was taken into custody in West Hollywood and is scheduled to appear in a federal court in California later Tuesday. His indictment was filed in New York.
