Popular Hollywood director arrested after swindling Netflix over a show that never aired

A writer-director from Hollywood was apprehended on Tuesday on allegations of defrauding Netflix out of $11 million for a science fiction series that failed to be broadcast, diverting the funds instead towards investments in cryptocurrency and a series of extravagant acquisitions, which notably included a collection of Rolls-Royces and a Ferrari.

Carl Erik Rinsch – who is perhaps most recognized for his directorial work on the film “47 Ronin” – faces charges of wire fraud and money laundering, stemming from what federal prosecutors characterize as a scheme designed to deceive the streaming service.

It remains uncertain whether Rinsch has engaged legal representation. Netflix has opted not to provide any commentary on the matter.

Prosecutors indicated that Netflix initially disbursed approximately $44 million to procure an incomplete series titled “White Horse” from Rinsch, but subsequently allocated an additional $11 million upon his assertion that further funds were necessary to finalize the project.

Rather than allocating the supplementary funds towards completing production, Rinsch allegedly discreetly transferred the amount into a personal brokerage account, where he executed a series of unsuccessful investments that purportedly resulted in the loss of approximately half of the $11 million within two months, as per the prosecutors’ claims.

The filmmaker subsequently invested the remaining funds into the cryptocurrency market, which ultimately yielded profitable returns, with Rinsch reportedly transferring the profits into a personal bank account, according to the indictment.

Thereafter, Rinsch expended approximately $10 million on personal expenditures and luxury items during a spending spree that, according to prosecutors, encompassed around $1.8 million in credit card payments; $1 million in legal fees to litigate against Netflix for additional funds; $3.7 million on furnishings and antiques; $2.4 million for the acquisition of five Rolls-Royces and one Ferrari; and $652,000 on watches and apparel.

Rinsch, aged 47, was arrested in West Hollywood and is scheduled to appear in a federal court in California later on Tuesday, as reported by authorities. His indictment has been filed in New York.