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Carl Erik Rinsch Indicted for Alleged Fraud Against Netflix
Director Carl Erik Rinsch faces serious legal challenges following his indictment by federal prosecutors on charges of defrauding Netflix of $11 million. This fund was intended for the production of a science fiction television series; instead, Rinsch reportedly diverted it for personal investments and purchases.
Legal documents submitted in the U.S. District Court for the Southern District of New York reveal that Rinsch has been charged with one count of wire fraud, one count of money laundering, and five counts of engaging in monetary transactions involving property obtained through unlawful activities.
Rinsch gained fame for his visually compelling commercials before moving on to direct the 2013 film “47 Ronin,” which starred Keanu Reeves. However, he faced considerable setbacks during production, including being removed from the project as its budget escalated to $225 million. In 2018, Netflix approved a sci-fi series entitled “Conquest,” which ultimately fell through and was eventually canceled.
The fallout from the canceled project resulted in Netflix recording a write-off of $55 million, marking a significant financial loss attributed to Rinsch’s management of the production.
The dispute escalated to arbitration, where Rinsch was ordered in 2024 to repay $12 million to Netflix. The arbitrator found that Rinsch had misused a substantial portion of the funds for extravagant purchases, including luxury cars and high-end furniture, in addition to personal investments in both the stock market and cryptocurrency. Interestingly, his investments in cryptocurrency reportedly yielded a profit of $27 million at the time he cashed out.
Rinsch was taken into custody on Tuesday in West Hollywood.
In an official statement regarding the case, FBI assistant director Leslie Backschies highlighted the gravity of Rinsch’s alleged actions. “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,” she stated, underlining the serious implications of the accusations being leveled against him.
Source
www.thewrap.com