It’s a frequent occurrence in Hollywood for high-budget television series and films to be greenlit, only to underperform relative to the expectations set by studios and producers. Occasionally, someone recognizes the issue and halts production before further expenses accumulate, with little chance of financial return. The recent case of director Carl Rinsch, arrested for allegedly defrauding Netflix of $11 million, stands out amid this trend.
Typically, Hollywood directors, except for those like Die Hard and Predator director John McTiernan, who faced prison time for his controversial 2002 remake of Rollerball, don’t cross the boundaries between personal responsibility and artistic expenses. Rinsch, however, has been charged with misappropriating funds from Netflix, which were designated for a sci-fi television series called White Horse, to finance luxury items instead.
The public indictment reveals eye-opening details and offers a glimpse into the lavish lifestyles of the affluent and aspiring affluent. It states that Rinsch invested Netflix’s funds in “highly speculative security purchases, including options on a biopharmaceutical firm” and substantial cryptocurrency ventures, while also indulging in personal luxuries.
Rinsch’s indictment outlines numerous extravagant expenditures during his tenure on the series, including nearly $2 million in credit card spendings, close to $400,000 for lodging at the Four Seasons, $3.7 million on furniture and antiques, millions on luxury vehicles, watches, and clothing, and humorously, over $1 million on legal fees for lawsuits against Netflix for even more funding.
Despite Rinsch’s undistinguished career, where he’s more known for a cinematic flop than a string of successes, he had managed to gain a second chance with a high-profile project. After impressing Keanu Reeves during their collaboration, Rinsch received an opportunity from Netflix for a $60 million budget series, originally titled Conquest or White House. However, the project was marred by chaos, including incomplete scripts and erratic production practices.
Unfortunately, Rinsch’s grasp on the project slipped, leading Netflix to continue funding unreleased episodes. As his mental condition deteriorated and his marriage fell apart, concerns grew, prompting Netflix to ultimately terminate the project after claiming they realized that Rinsch would not complete the series.
When Netflix sought the return of their investment, Rinsch refused, arguing that his lavish expenses were integral to the series and dismissing the notion that he mismanaged their funds. The courts will now have the final say on the outcome. The situation exposes intriguing insights into the inner workings of the streaming industry and the unpredictable behavior of its figures, suggesting many more developments to unfold in the future.
