Hollywood Director Accused of $11M Netflix Fraud

A Hollywood director made headlines recently, and not in a good way. Carl Erik Rinsch, known for his work on the 2013 film 47 Ronin, is facing serious charges of fraud and money laundering. The allegations claim that he misused $11 million from a subscription video on-demand streaming service, which many believe to be Netflix, to fund his own lavish lifestyle instead of finishing the sci-fi series, White Horse, he was supposed to be working on.

According to reports, Mr. Rinsch was given an initial budget of $44 million by Netflix to create the series about artificial human clones. However, after allegedly not completing any episodes, he convinced Netflix to give him an additional $11 million, claiming the initial budget was insufficient. Instead of using the funds for the series, he reportedly used the money to invest in risky financial ventures and splurge on personal luxuries like luxury cars, cryptocurrency, and high-end bedding.

The indictment against Mr. Rinsch outlines a spending spree that included purchasing a fleet of Rolls-Royces and a Ferrari, as well as spending millions on credit card bills, furniture, antiques, and mattresses. Additionally, it’s alleged that some of the funds were used to hire lawyers to sue Netflix for more money and to cover the costs of a divorce.

Reports suggest that Mr. Rinsch’s behavior grew increasingly erratic after signing the deal with Netflix, with claims that he believed he could predict natural disasters and had special knowledge about Covid-19. Despite the serious charges he is facing, Mr. Rinsch appeared in court and was released on a $100,000 bail. He is expected to stand trial in New York at a later date and, if found guilty, could face up to 20 years in prison. It’s a cautionary tale of what can happen when money and creativity collide in Hollywood.