Hollywood Director Charged with Defrauding $11 Million from Netflix

Hollywood Director Charged with Defrauding $11 Million from Netflix

Carl Erik Rinsch has been arrested and accused of defrauding Netflix

AuthorPavitra ShettyMar 20, 2025, 11:29 AM

Carl Erik Rinsch, aged 47, faces charges of federal fraud and money laundering after allegedly diverting funds intended to produce a sci-fi series for the streaming service.

Alleged Fraud and Misuse of Funds

Rinsch, best known for the 2013 film 47 Ronin, was entrusted by Netflix with funds to create the series White Horse, a show about artificial human clones. Between 2018 and 2019, Netflix initially allocated $44 million to fund the series. However, Rinsch allegedly failed to produce any episodes and, instead of using the budget to complete the project, transferred the funds to his personal accounts. In March 2020, Netflix reportedly provided him with an additional $11 million after he claimed the initial budget was insufficient.

Prosecutors claim Rinsch used the $11 million for personal expenditures, including risky investments, luxury cars, cryptocurrency, and high-end bedding. Among his purchases were Rolls-Royces, a Ferrari, and $933,000 on luxury mattresses and bedding. The indictment further states that he spent $3.7 million on furniture and antiques, as well as $1.8 million on credit card bills. In addition, approximately $1 million was sent to lawyers for legal battles with Netflix and a divorce, according to court documents.

Netflix Dispute and Personal Struggles

Rinsch’s ongoing dispute with Netflix over the failed series has been publicly reported, though the indictment refers to the streaming service as a “subscription video on-demand streaming service” without naming Netflix directly. The director’s behavior had reportedly become erratic during this period. It was reported that Rinsch believed he could predict natural events like lightning strikes and volcanic eruptions and even claimed to have knowledge of a “secret transmission mechanism” related to COVID-19.

Despite spending nearly half of the $11 million in just two months, Rinsch allegedly continued to assure Netflix that the show was progressing well, according to the indictment.

Legal Proceedings and Potential Consequences

Rinsch appeared in a Los Angeles court on Tuesday but declined to enter a plea. He was released on a $100,000 bail and is expected to stand trial in New York at a later date. If found guilty, Rinsch faces up to 20 years in prison.

The case highlights the serious consequences of fraud and financial misconduct in the entertainment industry, especially when large investments are involved. Rinsch's alleged actions have raised concerns about transparency and accountability in the production of high-budget content.

 

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