Carl Erik Rinsch, the Hollywood director known for 47 Ronin, has been arrested and charged with federal fraud and money laundering for allegedly misappropriating $11 million given to him by Netflix for a sci-fi series called White Horse. Rinsch is accused of using the funds, intended for the production of the show, to purchase luxury items such as cars, cryptocurrency, expensive furniture, and luxury bedding, instead of creating the series as promised.
Between 2018 and 2019, Netflix initially gave him a $44 million budget for the series, which he claimed was insufficient, leading to an additional $11 million from the streaming service in March 2020. However, Rinsch allegedly transferred the funds to his personal accounts and spent the majority of it on personal expenses, including $1.8 million on credit card bills, $3.7 million on antiques, and nearly $1 million in legal fees. He reportedly used the remaining money for risky financial ventures, such as cryptocurrency investments.
Rinsch’s alleged fraudulent behavior was discovered when he continued to assure Netflix that the series was progressing well, even though no episodes had been completed. His behavior also seemed to escalate in personal matters, with reports claiming he became increasingly erratic, even believing he had the ability to predict natural events like lightning strikes and volcanic eruptions.
If convicted, Rinsch faces up to 20 years in prison. He was released on a $100,000 bail and is awaiting trial. Netflix has not commented on the arrest, though reports of his long-standing dispute with the company over the failed series have been widely covered.