Hollywood filmmaker Carl Erik Rinsch, known for “47 Ronin,” was arrested for allegedly defrauding Netflix of $11 million by not producing the sci-fi show “White Horse” as agreed.
The big picture: Netflix paid $44 million for the show initially and an additional $11 million for production costs, which Rinsch diverted to personal cryptocurrency investments and extravagant purchases like Rolls-Royces and a Ferrari.
- Rinsch reportedly transferred the extra $11 million to a personal brokerage account, where he made failed investments, losing half the amount in just two months.
- He then moved the remaining money to cryptocurrency investments, which turned out to be profitable. The earnings were later transferred to his personal bank account.
- With the funds, Rinsch embarked on a spending spree totaling $10 million, including $1.8 million on credit card bills, $1 million on lawyers to sue Netflix for more money, $3.7 million on furniture and antiques, $2.4 million on luxury cars, and $652,000 on watches and clothes.
State of play: The 47-year-old filmmaker was arrested in West Hollywood and is due to appear in a federal court in California. His indictment was filed in New York.
- Rinsch is facing charges of wire fraud and money laundering over the alleged fraudulent scheme to swindle Netflix out of the $11 million intended for the production of the sci-fi show.
