Hollywood filmmaker Carl Erik Rinsch has been arrested and charged with multiple counts of fraud and money laundering after allegedly misusing funds intended for a Netflix sci-fi series.
According to prosecutors, Rinsch, 47, diverted millions of dollars meant for the production of “White Horse” to purchase luxury cars, cryptocurrency, and extravagant personal items. The director, best known for helming the 2013 film “47 Ronin,” appeared in a Los Angeles court on Tuesday, where he declined to enter a plea.
The indictment does not explicitly mention Netflix, instead referring to a “subscription video on-demand streaming service.” However, Rinsch’s long-standing legal battle with Netflix over the failed series has been widely documented in previous media reports.
Netflix has chosen not to comment on his recent arrest, though the company had previously acknowledged severing ties with Rinsch due to financial and creative disputes. The charges against him stem from his alleged misuse of production funds provided between 2018 and 2020.
Between 2018 and 2019, Netflix initially allocated $44 million for “White Horse,” a series intended to explore artificial human clones. Despite the significant budget, Rinsch reportedly failed to deliver even a single completed episode.
In March 2020, he persuaded Netflix to send an additional $11 million, claiming that the initial funds were insufficient to finish the project. According to court filings, instead of investing in production, Rinsch funneled the money into his personal bank accounts and made a series of high-risk financial investments.
Prosecutors allege that within just two months of receiving the additional $11 million, Rinsch had already squandered nearly half of it. While assuring Netflix that the project was progressing well, he was, in reality, engaged in reckless spending.
The indictment details how Rinsch splurged on luxury vehicles, including several Rolls-Royces and a Ferrari. Additionally, he reportedly spent $1.8 million on credit card bills, $3.7 million on furniture and antiques, and an astonishing $933,000 on high-end mattresses and bedding.
The legal documents further state that Rinsch used $1 million of the misappropriated funds to finance lawsuits—one against Netflix in an attempt to extract additional funding, and another for a personal divorce case.
Federal prosecutor Matthew Podolsky denounced Rinsch’s actions, stating, “Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating. But that was fiction.”
In addition to the allegations of financial misconduct, reports suggest that Rinsch exhibited increasingly erratic behavior following his deal with Netflix. A 2023 profile by The New York Times described how former friends and colleagues recounted his bizarre claims, including purported abilities to predict natural disasters such as lightning strikes and volcanic eruptions.
He also allegedly believed in a “secret transmission mechanism” for COVID-19, further adding to concerns about his state of mind during this period.
On Tuesday, Rinsch made his initial court appearance, during which he was asked if he had read the full 12-page indictment. He reportedly responded, “Not cover to cover.” He was subsequently released on a $100,000 bail bond and is expected to stand trial in New York at a later date.
If convicted on all counts, Rinsch faces a potential sentence of up to 20 years in prison. The case continues to unfold as federal authorities push forward with their prosecution.
