Hollywood Director Charged with Defrauding Netflix of $11 Million for Unproduced Show

NEW YORK—On Tuesday, a Hollywood writer-director found himself in custody, facing allegations of defrauding Netflix of $11 million for a sci-fi series that never made it to air. Instead of completing the project, he allegedly funneled the funds into cryptocurrency ventures and extravagant purchases including a collection of Rolls-Royces and a Ferrari.

Carl Erik Rinsch—recognized for his direction of “47 Ronin”—is charged with wire fraud and money laundering in what federal prosecutors claim is a manipulation scheme aimed at deceiving the streaming service.

According to prosecutors, Netflix initially invested around $44 million in an incomplete series titled “White Horse,” and later provided an additional $11 million on Rinsch’s assertion that more funds were necessary to finish the show.

Instead of using these funds for production, Rinsch allegedly transferred the money to his personal brokerage account, where he made several unsuccessful investments that resulted in losing nearly half of the $11 million within two months, the prosecutors assert.

The filmmaker subsequently turned to the cryptocurrency market, which proved lucrative, allowing him to shift the gains into his personal bank account, as outlined in the indictment.

Rinsch then reportedly spent approximately $10 million on personal indulgences during a spending spree, which allegedly included around $1.8 million in credit card bills; $1 million in legal fees related to suing Netflix for additional funds; $3.8 million on furniture and antiques; $2.4 million on five Rolls-Royces and a Ferrari; and $652,000 on watches and apparel.

Rinsch, 47, was taken into custody in West Hollywood, California, and had his first court appearance on Tuesday.

He appeared before a federal judge in Los Angeles dressed in a turtleneck and jeans, with his hands and feet shackled. He did not enter a plea and only responded to the judge’s inquiries. When asked if he reviewed the indictment fully, he replied “not cover to cover” but stated that he understood the accusations.

U.S. Magistrate Judge Pedro V. Castillo permitted his release on Tuesday after he agreed to a $100,000 bond to ensure his appearance in court in New York, where the indictment was filed.

His newly appointed attorney, Annie Carney, refrained from commenting outside the courtroom and noted during the hearing that she had not yet reviewed the prosecution’s evidence against Rinsch. In discussing the terms of his release, she remarked, “the allegations in this case are purely financial.”

No date for Rinsch’s next court appearance in New York has been established.

Netflix chose not to comment on the situation.