Hollywood director arrested on charges of swindling Netflix out of $11M
for a show that never aired
[March 19, 2025]
NEW YORK (AP) — A Hollywood writer-director was arrested Tuesday
on charges that he swindled $11 million from Netflix for a sci-fi show
that never aired, instead steering the cash toward cryptocurrency
investments and a series of lavish purchases that included a fleet of
Rolls-Royces and a Ferrari.
Carl Erik Rinsch — perhaps best known for directing the film “47 Ronin"
— has been charged with wire fraud and money laundering over what
federal prosecutors allege was a scheme to defraud the streaming giant.
Prosecutors said Netflix had initially paid about $44 million to
purchase an unfinished show called “White Horse" from Rinsch, but
eventually doled out another $11 million after he said he needed the
additional cash to complete the show.
Rather than using the extra money to wrap up production, Rinsch quietly
transferred the money to a personal brokerage account, where he made a
series of failed investments that lost about half of the $11 million in
two months, according to prosecutors.
The filmmaker then dumped the rest of the money into the cryptocurrency
market, which proved to be a profitable move, with Rinsch eventually
transferring the earnings into a personal bank account, according to an
indictment.
From there, Rinsch spent about $10 million on personal expenses and
luxury items in a spending spree that, according to prosecutors,
included about $1.8 million on credit card bills; $1 million on lawyers
to sue Netflix for more money; $3.8 million on furniture and antiques;
$2.4 million for five Rolls-Royces and one Ferrari; and $652,000 on
watches and clothes.
Rinsch, 47, was arrested in West Hollywood, California, and had an
initial court hearing on Tuesday.
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Director Carl Rinsch poses for photographers during a news
conference to promote his 3-D film "47 RONIN" in Tokyo, Japan, Nov.
18, 2013. (AP Photo/Shuji Kajiyama, file)
 He appeared in a federal courtroom
in Los Angeles in a turtleneck sweater and jeans with shackles on
his arms and legs. He did not enter a plea and spoke only to answer
a judge’s questions. When asked if he’d read the indictment against
him, he said “not cover to cover” but told the judge he understood
the charges.
U.S. Magistrate Judge Pedro V. Castillo ordered that he be released
later Tuesday after he agreed to post a $100,000 bond to assure
he’ll appear in court in New York, where his indictment was filed.
His newly appointed attorney, Annie Carney, declined to comment
outside court. She said during the hearing that she had not yet seen
the prosecution’s evidence against Rinsch. When discussing the terms
of his release, she said, “the allegations in this case are purely
financial.”
Rinsch's New York court date had not yet been set.
Netflix declined to comment.
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