Netflix Funding Used for Luxury Cars and Crypto, DOJ Alleges

A prominent Hollywood filmmaker, known for his work on the movie “47 Ronin” starring Keanu Reeves, was recently arrested on charges of fraud. Carl Erik Rinsch, the director behind the samurai epic, was accused of deceiving Netflix out of millions of dollars for a TV series he never completed.

Rinsch, 47, who has had experience directing short films and commercials, was hired by Netflix back in 2018 to produce a sci-fi series called “White Horse.” Although Netflix invested a substantial $44 million in the project, the show remained unfinished, prompting Netflix to provide an additional $11 million to help complete it.

However, it is alleged that Rinsch misused these funds for personal gain rather than completing the project as promised. Instead of investing in the TV series, Rinsch reportedly used the money to support his lavish lifestyle and dabble in unsuccessful financial ventures.

Within a matter of weeks, most of the $11 million transferred by Netflix was apparently lost due to poor investments in securities and cryptocurrencies. The remaining funds were allegedly spent on extravagant items such as luxury hotel stays, vacation rentals, furniture, antiques, vehicles including five Rolls-Royces and a Ferrari, as well as watches and clothing.

Despite receiving the funds, Rinsch failed to fulfill his obligations to Netflix, leading to his arrest on charges of wire fraud, money laundering, and other related crimes. If convicted, he could face a lengthy prison sentence. The FBI led the investigation into this case, emphasizing the government’s commitment to combat fraud and hold individuals accountable.

Rinsch’s previous project, “47 Ronin,” holds a low 16% rating on Rotten Tomatoes, cementing his name in both cinematic achievements and financial mismanagement.