Federal prosecutors have charged Carl Erik Rinsch with fraud and money laundering after he allegedly misused Netflix´s funds for personal luxury expenses. Authorities arrested the 47-year-old director, known for 47 Ronin, on Tuesday in LA before releasing him on $100,000 bail.
Netflix initially gave Rinsch a $44 million budget between 2018 and 2019 to produce White Horse, a sci-fi series featuring human clones. Prosecutors say he failed to complete a single episode and requested another $11 million in March 2020, claiming an insufficient budget.
Rinsch made high-risk financial bets and moved millions of dollars into personal bank accounts rather than using the money for manufacturing. Within two months, he allegedly spent almost half of the $11 million on opulent personal purchases, bitcoin, and luxury goods, according to federal prosecutors.
The court filing reveals that Rinsch spent the funds on luxury bedding valued at $1 million, including a Ferrari and Rolls-Royce; according to reports, he paid $1 million on legal expenses, $3.7 million on furniture, and $1.8 million on credit card debt repayment.
Despite mismanaging the funds, Rinsch assured Netflix that White Horse was progressing smoothly. Prosecutor Matthew Podolsky described the deception as a complete fiction to steal money from the streaming giant.
Reports suggest that Rinsch exhibited increasingly erratic behavior after signing the Netflix deal, with former colleagues questioning his mental state. The New York Times detailed his brief in bizarre theories, including his ability to predict lightning and volcanic eruptions.
Rinsch could face up to 20 years in prison for defrauding Netflix and laundering money if convicted. The director is expected to appear in a New York court for trial proceedings, where he will face mounting legal challenges.
