Netflix Director Accused of $11M Scam: Funds Diverted to Crypto Trades, Luxury Splurges

Carl Erik Rinsch, the director of “47 Ronin,” was arrested on March 18 in West Hollywood, California, after being indicted for wire fraud and money laundering.

Prosecutors allege that he misused $11 million from a major streaming service, meant for his science fiction television series “White Horse,” on crypto trading.

The $11M Fraud

According to the indictment, Rinsch reached a deal with the streaming platform in 2018, securing $44 million to complete the production of  White Horse. In 2019 and early 2020, he requested an additional $11 million, which was transferred to his company on March 6, 2020.

In a statement , acting U.S. Attorney Matthew Podolsky said:

“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.”

Instead of using the funds as intended, he moved them through various accounts before storing them in a personal brokerage account. He then engaged in speculative securities trading but lost more than half of the funds within two months.

Rather than redirecting the remaining money back into the show, Rinsch allegedly shifted to crypto trading and continued making extravagant personal purchases. Prosecutors say he spent nearly $1.8 million on credit card payments, $1 million on legal fees for lawsuits against the streaming service and his divorce, and $395,000 on luxury hotel stays and rental properties.

Further, the Netflix director spent $3.8 million on furniture and antiques, including $638,000 on two mattresses and $295,000 on luxury bedding. His purchases also included five Rolls-Royces and a Ferrari totaling $2.4 million and $652,000 on designer watches and clothing.

The Charges Against Rinsch

The 47-year-old has been indicted with one count of wire fraud, one count of money laundering, and five counts of engaging in financial transactions involving criminally gotten property. If convicted, he faces up to 20 years in prison for wire fraud, 20 years for money laundering, and 10 years for each financial transaction charge.

This is not Rinsch’s first encounter with controversy. In 2023, the “Conquest” director reportedly took $4 million from the show’s budget to invest in Dogecoin, earning a $27 million return.

Much like the current case, his crypto profits were followed by a lavish spending spree. Rinsch allegedly spent nearly $9 million on luxury purchases, including high-end furniture, designer clothing, a $380,000 watch, and luxury vehicles.