Hollywood Director Found Guilty of Misusing $11M in Netflix Funds for Luxury Watches and Cars

Director Carl Rinsch at a world premiere for the film ’47 RONIN’ in Tokyo, Japan, on November 19, 2013.
Credit:

Keizo Mori/UPI/Shutterstock

NEED TO KNOW

• Hollywood director Carl Erik Rinsch has been found guilty of using an $11 million business investment from Netflix to speculate on cryptocurrency and fund lavish personal expenses.
• Rinsch spent at least $3.3 million on furniture, antiques, and mattresses, among other purchases, the United States Attorney’s Office for the Southern District of New York reported on Thursday, December 11.
• The director faces financial crimes charges, including one count of wire fraud and one count of money laundering, each carrying a maximum sentence of 20 years.

Hollywood director Carl Erik Rinsch has been found guilty of misappropriating an $11 million investment from Netflix intended for a science fiction TV show.

On December 11, the United States Attorney’s Office for the Southern District of New York announced Rinsch’s conviction, detailing his involvement in a fraudulent scheme regarding funds meant for the completion of the series titled White Horse.

Instead of utilizing the funds for the show, Rinsch diverted the money to speculate on cryptocurrency and finance personal luxuries. His expenditures included at least $1.7 million on credit card bills, over $3.3 million on high-end furniture and antiques, approximately $387,000 for a Swiss watch, and around $2.4 million on luxury cars, including five Rolls Royces and a red Ferrari.

As a result of these actions, Rinsch has been convicted on one count of wire fraud and one count of money laundering. Both charges could lead to a maximum of 20 years in prison. Additionally, he faces five counts of engaging in monetary transactions derived from unlawful activity, which each carry a potential 10-year sentence.

Director Carl Erik Rinsch at New Directors Showcase in Los Angeles on September 23, 2015.

John Sciulli/Getty

U.S. Attorney Jay Clayton highlighted the severity of the case, stating, “Carl Erik Rinsch took $11 million meant for a TV show and gambled it on speculative stock options and crypto transactions. Today’s conviction shows that when someone steals from investors, we will follow the money and hold them accountable.”

Rinsch, known for directing the 2013 film 47 RONIN, had partially completed White Horse and had entered into an agreement with Netflix to be compensated for existing episodes while being funded for the show’s completion.

Between 2018 and 2019, the streaming service reportedly paid approximately $44 million for the production. When Rinsch requested additional funding in 2019 and 2020, he received $11 million, which was transferred to a company he controlled in March 2020. However, shortly after receiving the funds, Rinsch began transferring them through multiple bank accounts before consolidating them into a personal brokerage account.

Director Carl Rinsch at the world premiere for 47 RONIN in Tokyo, Japan, on November 19, 2013.

Keizo Mori/UPI/Shutterstock

Ultimately, Rinsch used these funds for both personal and speculative purchases of securities. Officials noted that his investments proved unsuccessful, resulting in the loss of more than half of the $11 million within two months.

Rinsch’s actions, which violated an agreement with the streaming service, have been the subject of previous reports, detailing the extent of his financial misconduct. As the legal proceedings continue, Rinsch’s conviction raises implications for accountability in the entertainment industry.