Filmmaker Indicted for Scamming Netflix Out of Millions

Hollywood’s lavish spending culture collided spectacularly with the criminal justice system when director Carl Rinsch was arrested for allegedly siphoning $11 million from streaming giant Netflix for a sci-fi series that never materialized.

Federal prosecutors have charged the 47 Ronin helmsman with wire fraud and money laundering in a scheme that reads like a screenplay itself. According to the 12-page indictment made public Tuesday, the 47-year-old filmmaker could face up to 90 years imprisonment if convicted on all counts, reports Deadline.

“Carl Rinsch allegedly stole more than $11 million from a prominent streaming platform to finance lavish purchases and personal investments instead of completing a promised television series,” FBI Assistant Director Leslie Backschies declared as the charges became public.

The saga began when Netflix, referred to in court documents as “Streaming Company-1,” originally invested $44 million in Rinsch’s project between 2018 and 2019. Initially titled White Horse before being renamed Conquest, the series reportedly centered on a scientist who created super-intelligent clones.

In March 2020, despite seeing minimal progress, Netflix transferred an additional $11 million after Rinsch insisted the funds were necessary for completion. Court documents reveal that Rinsch “almost immediately” diverted this money to personal accounts before embarking on “extremely risky” securities trades, losing over half the sum within two months.

While hemorrhaging Netflix’s investment, Rinsch reportedly assured executives that production was “awesome and moving forward really well,” Deadline reveals.

The filmmaker’s fortunes reversed when he transferred the remaining funds to cryptocurrency. A well-timed investment in Dogecoin, one of Elon Musk‘s preferred cryptocurrencies, transformed approximately $4 million into nearly $27 million, according to a 2023 New York Times report.

Prosecutors allege Rinsch then embarked on an extraordinary spending spree that included:

• Approximately $2.4 million on five Rolls-Royces and a Ferrari
• $638,000 on two mattresses
• $295,000 on luxury bedding and linens
• $3.8 million on furniture and antiques
• $1.8 million on credit card bills
• $1 million on legal representation to sue Netflix “for even more money”

“The FBI will continue to reel in any individual who seeks to defraud businesses,” Assistant Director Backschies warned in the indictment.

The indictment charges Rinsch with “one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and five counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum sentence of 10 years in prison,” Deadline details.

This isn’t Rinsch’s first legal entanglement with Netflix. The streaming service previously won a $12 million arbitration ruling against him after he claimed the company owed him $14 million. The filmmaker reportedly never paid the judgment.

Netflix has declined comment on the indictment. Rinsch was scheduled to appear before U.S. District Judge Jed S. Rakoff on Tuesday.