Filmmaker Carl Erik Rinsch, known for directing 47 Ronin was arrested on Tuesday in West Hollywood, facing allegations of fraud and money laundering after reportedly misusing $11 million from Netflix. The money was meant to fund a science-fiction series, but prosecutors say it was funneled into luxury purchases and risky investments.
Rinsch, once a rising director in Hollywood, secured an estimated $44 million from Netflix between 2018 and 2019 to produce a high-concept sci-fi series initially called White Horse, later renamed Conquest. The project was supposed to be a visually groundbreaking series centered around artificial intelligence and futuristic themes, but it never materialized beyond a few short clips and concept art.
As production stalled, Rinsch requested an additional $11 million in March 2020, claiming that the initial funds were not enough to complete the series. Netflix, eager to see progress, released the money. What happened next, however, was far from the expected completion of the show.
Rather than using the funds for production, Rinsch allegedly redirected the money into his personal accounts, making extravagant purchases. Court documents reveal that he spent millions on high-end vehicles, luxury furniture, and watches.
Among the most eye-catching purchases were five Rolls-Royces, a Ferrari, and a collection of designer clothing. He also reportedly booked long stays at the Four Seasons Hotel and spent hundreds of thousands on high-end bedding and mattresses.
Prosecutors say he invested a large chunk of the money in cryptocurrency, initially losing about $5.5 million in stock trades. However, luck seemed to be on his side when he made an astonishing $27 million profit on Dogecoin, a popular cryptocurrency. Instead of using this unexpected windfall to finish the Netflix project, Rinsch allegedly transferred the money into personal accounts and continued his spending spree.
By early 2021, Netflix had had enough. With no substantial progress on Conquest, the streaming giant canceled the project, writing off a staggering $55 million loss. The company later took legal action, leading to an arbitration ruling that ordered Rinsch to pay back $11.8 million. Rinsch attempted to appeal but was unsuccessful. Now, his financial troubles have escalated into criminal charges.
Rinsch, 47, was arrested in West Hollywood and made his first court appearance in Los Angeles on Tuesday. Dressed casually in a turtleneck and jeans, he appeared in shackles and spoke briefly, confirming that he understood the charges but admitted he had not read the indictment in full.
U.S. Magistrate Judge Pedro V. Castillo allowed Rinsch to be released on a $100,000 bond under the condition that he appear in a New York court, where the indictment was filed. His newly appointed attorney, Annie Carney, declined to comment but stated that the case revolved around financial allegations rather than violent crimes.
Rinsch faces multiple charges, including wire fraud and money laundering, which could lead to a maximum sentence of 20 years in prison for each count. Additionally, he faces five counts of engaging in unlawful financial transactions, each carrying a potential 10-year sentence.
Authorities say they are also working to seize assets bought with the allegedly misused funds. The case is being handled by federal prosecutors in the Southern District of New York, in collaboration with the FBI’s New York Field Office.
Assistant U.S. Attorney Matthew Podolsky stated,
“This case is about trust and deception. Netflix provided millions to create a series, and instead, that money was allegedly used for luxury items and speculative investments. We intend to hold the defendant accountable.”
Netflix has declined to comment on the situation, but the case raises serious concerns about financial oversight in Hollywood. The entertainment industry has long been familiar with budget overruns and financial mismanagement, but Rinsch’s case is a stark example of what can happen when large sums of money are placed in the wrong hands.
