Director Arrested for Allegedly Stealing $11 Million from Netflix

NEW YORK (AP) — Hollywood director Carl Erik Rinsch was arrested Tuesday in West Hollywood, California, on allegations of defrauding Netflix out of $11 million for a sci-fi series titled “White Horse” that never aired. Prosecutors accuse the 47-year-old director of misappropriating funds intended for production, instead using them for personal expenses and investments.

Rinsch, known for directing the 2013 film “47 Ronin,” faces charges of wire fraud and money laundering. According to federal prosecutors, Netflix originally paid Rinsch $44 million for the show but gave him an additional $11 million after he claimed he needed more funds to complete the project.

However, instead of investing the money into production, Rinsch transferred the funds to a personal brokerage account, where he incurred substantial losses in risky investments. Prosecutors state that he lost approximately half of the additional $11 million within two months before moving the remainder into the cryptocurrency market, where he managed to generate significant returns.

From the alleged scheme’s proceeds, Rinsch reportedly spent nearly $10 million on luxury items and personal expenses. Specific expenditures included $1.8 million on credit card bills, $1 million in legal fees related to a lawsuit against Netflix for additional money, and $6.2 million on high-end vehicles, such as five Rolls-Royces and a Ferrari. Additional expenditures included $3.8 million on furniture and antiques and $652,000 on designer watches and clothing.

During his initial court appearance in Los Angeles on Tuesday, Rinsch appeared shackled and dressed in a turtleneck sweater with jeans. He did not enter a plea but confirmed to the judge that he understood the charges presented against him. U.S. Magistrate Judge Pedro V. Castillo set Rinsch’s release on a $100,000 bond, ensuring he will attend future court dates.

His attorney, Annie Carney, did not comment on the case after the hearing, stating she had yet to review the prosecution’s evidence. Rinsch’s court date in New York has not yet been scheduled. Netflix has declined to comment on the matter.