Michaela
The Department of Justice (DOJ) has arrested filmmaker Carl Erik Rinsch, alleging he misused $11 million from Netflix — intended for a sci-fi series — to gamble on stocks and cryptocurrency instead.
According to a press release by the U.S. Attorney’s Office for the Southern District of New York, Rinsch was taken into custody on March 18 in West Hollywood, California, following allegations that he defrauded Netflix out of millions intended for a sci-fi series.
Acting U.S. Attorney Matthew Podolsky and FBI New York Field Office Assistant Director Leslie Backschies detailed the charges, which stem from an alleged scheme to misappropriate funds meant for the development of the project, titled White Horse.
“As alleged, Carl Erik 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,” Podolsky stated.
In 2018, the filmmaker reportedly secured a deal with Netflix to finance his science fiction series. Under the agreement, Netflix would pay for the existing episodes and provide additional funding to complete the project. Between 2018 and 2019, the streaming platform transferred approximately $44 million toward the production of White Horse.
In late 2019 and early 2020, Rinsch requested additional funding from Netflix to complete White Horse. The streaming giant agreed to provide an extra $11 million, which was transferred to a company controlled by Rinsch in March 2020.
Shortly after receiving the finances from Netflix, Rinsch allegedly moved the funds through multiple bank accounts before consolidating them into a personal brokerage account. He then used the money to make a series of personal and speculative investments in securities.
Despite losing most of the $11 million, Rinsch reportedly did not allocate the remaining money toward the production of White Horse. Instead, prosecutors allege he used the funds for personal spending, cryptocurrency investments, and luxury purchases.
According to the indictment, Rinsch spent approximately $1.79 million on credit card bills, over $1 million on legal fees — including lawsuits against Netflix and divorce-related expenses — and nearly $395,000 on accommodations at the Four Seasons and other high-end rental properties and more.
Additionally, Rinsch allegedly spent $2.42 million on six luxury vehicles, including five Rolls-Royces and a Ferrari, along with $652,000 on watches and designer clothing.
Rinsch has been charged with multiple financial crimes, including one count of wire fraud and one count of money laundering, each carrying a maximum sentence of 20 years in prison. Additionally, he faces five counts of engaging in monetary transactions involving property derived from unlawful activity, with each charge carrying a potential sentence of up to 10 years.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
