U.S. federal authorities have arrested and indicted filmmaker Carl Erik Rinsch for allegedly misusing millions of dollars meant for a sci-fi television series.
Prosecutors claim Rinsch diverted the funds into high-risk stock trades and cryptocurrency investments, ultimately spending millions on luxury items.
The Department of Justice (DOJ) revealed the indictment in a Manhattan federal court on March 18, charging Rinsch with fraud and money laundering, offences that could carry a prison sentence of up to 20 years.
According to the indictment, Rinsch received an $11 million instalment from a major streaming platform in March 2020 for production expenses on White Horse, later renamed Conquest. Instead, he allegedly transferred $10.5 million into a brokerage account, engaging in speculative stock trades that led to losses exceeding $5.5 million.
Despite assuring the platform—widely reported to be Netflix—that production was on track, Rinsch allegedly continued gambling with the funds. His cryptocurrency investments performed better, yielding several million dollars in early 2021. However, rather than reinvesting in the series, prosecutors claim he spent nearly $3.8 million on furniture and antiques, five Rolls-Royces, a Ferrari, luxury watches, and high-end fashion purchases totalling over $3 million.
Although the DOJ did not name Netflix, The New York Times previously reported the platform had paid Rinsch $55 million for Conquest before cancelling the project in 2021 due to his erratic behaviour.
The prosecutors alleged he received $44 million in total. Rinsch allegedly used $1.8 million to pay off credit card debts and $1 million for legal fees—partly to sue Netflix for more money and cover his divorce expenses.
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Rinsch faces multiple charges, with potential sentences of up to 20 years each for fraud and money laundering. His case was assigned to U.S. District Judge Jed Rakoff. The Associated Press has reported that his attorney declined to comment.
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