Hollywood Director Arrested for Swindling Netflix Out of $11M

Hollywood director Carl Erik Rinsch, best known for ‘47 Ronin’, has been arrested on charges of wire fraud and money laundering for allegedly defrauding Netflix of $11 million. Prosecutors claim Rinsch diverted funds meant for his sci-fi series ‘White Horse’ into cryptocurrency and lavish personal purchases that included a fleet of Rolls-Royces, a Ferrari, watches and designer clothes.

According to the indictment, Netflix initially paid $44 million for ‘White Horse’, an unfinished project. However, Rinsch later requested an additional $11 million, claiming it was necessary to complete the show. Instead of using the funds for production, he allegedly transferred the money into a personal brokerage account, where he made failed investments that lost half the amount in two months. The remaining funds were poured into cryptocurrency, which yielded substantial profits.

Rather than returning the earnings, Rinsch allegedly transferred them to a personal account and went on a spending spree. Prosecutors say he spent $10 million on luxury items, including $1.8 million on credit card bills, $1 million on legal fees to sue Netflix for more money, $3.8 million on furniture and antiques, $2.4 million on five Rolls-Royces and a Ferrari, and $652,000 on watches and designer clothes.

Rinsch, 47, was arrested in West Hollywood and appeared in a Los Angeles federal court on Tuesday, wearing a turtleneck sweater and jeans, with shackles on his arms and legs. He did not enter a plea but confirmed he understood the charges.

U.S. Magistrate Judge Pedro V. Castillo granted Rinsch release on a $100,000 bond. His attorney, Annie Carney, declined to comment, stating she had not yet reviewed the prosecution's evidence.

Netflix has not issued a statement on the case. Rinsch's court date in New York, where the indictment was filed, has yet to be set.