Authorities arrested Carl Erik Rinsch, director of a scrapped Netflix series, on Tuesday, charging him with defrauding the streaming giant of $17 million. Prosecutors allege Rinsch squandered the budget on risky stocks, cryptocurrency, luxury cars, and even two mattresses costing over $1 million.
Videos by Wide Open Country
Netflix shelled out $70 million in 2018 for Rinsch's sci-fi project, White Horse, after a fierce bidding war. The 47 Ronin director pitched a tale of a scientist creating a humanlike species that rebels. He later demanded more cash, claiming he'd filmed just one episode. But he never delivered. Netflix renamed the show Conquest before it fizzled, as relayed by the New York Post.
Prosecutors say Rinsch funneled the funds through multiple bank accounts, landing them in a personal brokerage account. He then gambled big. In under eight weeks, he torched half the $17 million on volatile investments. The rest fueled a lavish spree -- five Rolls-Royces, a Ferrari, divorce legal fees, and those million-dollar mattresses.
"Carl Erik Rinsch orchestrated a scheme to steal millions," acting U.S. Attorney Matthew Podolsky said. "He solicited a large investment from a video streaming service, claiming that money would finance a television show. But that was fiction." Podolsky vowed justice, adding, "Rinsch's arrest shows we remain vigilant against fraud."
Rinsch Ordered To Repay Netflix
The director now faces wire fraud, money laundering, and charges tied to illegal transactions. If convicted, he could stare down 90 years in prison with consecutive sentences. Last year, an arbitrator ordered him to repay Netflix nearly $14 million, deepening his legal woes.
Rinsch's downfall marks a stunning collapse. He lured Netflix with a bold vision, only to burn through cash on personal whims. Prosecutors paint a picture of reckless deceit -- shuffling funds, chasing crypto highs, and splurging on extravagance.
The FBI and U.S. Attorney's Office pounced, signaling zero tolerance for such scams. The Rinsch news reverberates as a cautionary tale in Hollywood, where big budgets and bigger promises can unravel fast. For now, he awaits trial, his once-promising series reduced to a costly mirage.
