Director Carl Erik Rinsch arrested for allegedly defrauding Netflix of $11 million
Funds meant for sci-fi series “White Horse”/”Conquest” were used for personal trading and luxury purchases
Rinsch lost $5.5 million in risky stock trades and spent millions on Rolls-Royces, furniture, and luxury items
Netflix had previously paid Rinsch $44 million for the show that was never completed
Facing wire fraud and money laundering charges with potential 20-year prison sentences
Federal authorities arrested filmmaker Carl Erik Rinsch on March 18, 2025, charging him with fraud and money laundering after he allegedly misused $11 million in Netflix funds. The money was intended for a science fiction TV series that was never completed.
Prosecutors claim that instead of using the funds to finish the show called “White Horse” (later renamed “Conquest”), Rinsch diverted $10.5 million to a personal brokerage account. He then made what they describe as “extremely risky” trades.
The 47-year-old director’s market bets proved unsuccessful. He lost over $5.5 million on call options for a biopharmaceutical company within less than two months of receiving the funds from Netflix.
While his stock trading flopped, Rinsch had better luck with cryptocurrency. According to the indictment, he made several million dollars trading crypto in February 2021.
The filmmaker allegedly spent his profits on luxury items. These purchases included nearly $3.8 million on furniture and antiques, $2.4 million on five Rolls-Royces and a Ferrari, and over $650,000 on watches and luxury clothing.
Court documents show other personal expenses. Rinsch reportedly spent $1.8 million on credit card bills and $1 million in legal fees for a lawsuit against Netflix and for his divorce proceedings.
The series in question had a troubled history. Netflix had previously invested $44 million in the project before providing the additional $11 million in March 2020.
The Missing Millions: Where Netflix’s Money Went
Rinsch had assured Netflix that “Conquest” was “moving forward really well” even while losing their money on risky trades. The streaming service eventually canceled the show in early 2021 when Rinsch’s behavior reportedly turned “erratic.”
The New York Times first reported on the dispute between Rinsch and Netflix in November 2023. The newspaper noted that Netflix had initially won the rights to the project in a competitive auction despite Rinsch being a relatively unknown filmmaker.
His only previous directing credit was the movie “47 Ronin.” The science fiction series he pitched to Netflix was about artificial humans.
The U.S. Attorney’s Office did not name Netflix directly in the indictment. They referred to it only as “a subscription video on-demand streaming service.”
The case is being prosecuted by the Complex Frauds and Cybercrime Unit. Acting U.S. Attorney Matthew Podolsky stated that “Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud.”
FBI Assistant Director Leslie Backschies added that “the FBI will continue to reel in any individual who seeks to defraud businesses.” The investigation revealed detailed records of how Rinsch allegedly spent the misappropriated funds.
According to prosecutors, Rinsch purchased extravagant items including $638,000 for two mattresses and $295,000 for luxury bedding and linens. He also reportedly spent $395,000 on stays at the Four Seasons hotel and various luxury rental properties.
The filmmaker faces serious legal consequences. The wire fraud and money laundering charges each carry a maximum sentence of 20 years, while the five counts of engaging in monetary transactions in property derived from specified unlawful activity each carry a maximum sentence of 10 years.
Last year, an arbitrator awarded Netflix $8.8 million in damages after Rinsch initiated arbitration claiming the streaming giant had breached their contract. The arbitrator, former Los Angeles Superior Court Judge Rita Miller, ruled that none of Rinsch’s purchases were necessary for the production.
Rinsch’s lawyer, Annie Carney, declined to comment when approached outside the court. Netflix representatives also declined to comment on the indictment when contacted by reporters.
The case has been assigned to New York federal court Judge Jed Rakoff. Rinsch was arrested in West Hollywood, California, and appeared in court on the day of his arrest.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.
By Nermeen Nabil Khear