A Hollywood filmmaker has been found guilty of deceiving Netflix out of $11 million for a TV series that was never produced. Instead of using the funds for the intended show, Carl Erik Rinsch indulged in lavish spending, acquiring multiple luxury vehicles such as Rolls-Royces and a Ferrari, as well as splurging around $1 million on mattresses and high-end bedding.
Known primarily for directing ’47 Ronin,’ Rinsch faced charges of wire fraud and money laundering brought by federal prosecutors in New York. His lawyer, Benjamin Zeman, contested the verdict, expressing concerns about its potential impact on artists in contractual disputes with sponsors, particularly major media corporations like Netflix.
According to prosecutors, Netflix had initially paid Rinsch $44 million for an unfinished sci-fi series titled ‘White Horse.’ Allegedly, Rinsch requested an additional $11 million to complete the project, but this money was diverted towards personal expenses instead of the show’s production.
After making unsuccessful investments that led to significant losses, Rinsch turned to the cryptocurrency market and managed to generate some profits, which he subsequently transferred to his personal bank account. These gains fueled his extravagant purchases, including five Rolls-Royces, a Ferrari, expensive watches, clothing, two costly mattresses, luxury bedding, and settling substantial credit card debts.
Despite the financial misconduct, the TV series remained incomplete, and Netflix declined to comment on the matter. Rinsch, aged 48, is scheduled for sentencing in April. U.S. Attorney Jay Clayton emphasized that Rinsch misused the $11 million intended for the TV show on speculative investments, highlighting the importance of holding individuals accountable for financial crimes.
The conviction underscores the commitment to pursuing individuals who defraud investors, ensuring accountability for their actions.