- Film director Carl Rinsch faces fraud and money laundering charges for allegedly misappropriating $11 million in Netflix funding.
- Prosecutors claim Rinsch used the funds meant for his sci-fi series “White Horse” for personal trading, including cryptocurrency investments that eventually proved profitable.
- If convicted on all counts, Rinsch could face up to 90 years in prison for wire fraud, money laundering, and related charges.
Film director Carl Rinsch was arrested Tuesday in West Hollywood on charges of wire fraud and money laundering after allegedly misusing $11 million intended for his sci-fi series. Prosecutors claim the “47 Ronin” director diverted funds provided by Netflix for production purposes into personal accounts for securities trading and luxury purchases.
According to court documents, Rinsch requested additional funding from the streaming giant in 2020 to complete his science fiction series “White Horse” after his production company had already received $44 million. Rather than using these funds for production, authorities allege he transferred the money to personal accounts and began trading securities.
“Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating. But that was fiction,” stated acting U.S. Attorney Matthew Podolsky in a statement.
Federal prosecutors detailed how Rinsch’s initial investments performed poorly, with more than half the funds lost by late April 2020 through “highly speculative options and cryptocurrency trading,” including investments in an ETF tracking the S&P 500 index.
However, the indictment notes that Rinsch’s cryptocurrency speculation “eventually proved profitable.” Previous reports from 2023 suggested he liquidated Dogecoin positions initially worth $4 million, turning them into $27 million by May 2021. Rinsch allegedly used Kraken cryptocurrency exchange to purchase digital assets through transfers from Schwab Bank.
The indictment claims Rinsch used his investment gains for extravagant personal spending, including:
– $2.4 million on five Rolls-Royces and a Ferrari
– $3.7 million on furniture and antiques
– $652,000 on watches and clothing
– $638,000 on two mattresses
– $295,000 on luxury bedding and linens
– $1.1 million on legal fees for suing Netflix and divorce proceedings
Despite completing “six short-form episodes,” prosecutors assert Rinsch never delivered the finished television show to Netflix nor returned the funds.
The legal consequences facing Rinsch are severe. The wire fraud charge carries a maximum 20-year prison sentence, while money laundering could add another 20 years. Additionally, five counts of engaging in monetary transactions with criminally derived property each carry potential 10-year sentences, potentially totaling 90 years if served consecutively.
The case highlights the increasing intersection between entertainment industry financing and cryptocurrency investment, particularly during the 2020-2021 bull market when many speculative digital assets like Dogecoin saw exponential growth before later corrections.
Multiple reports have identified the “prominent streaming platform” victimized in this scheme as Netflix, which had previously worked with Rinsch on other projects.
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