Indictment of Director Carl Erik Rinsch
Director Carl Erik Rinsch has been charged with fraud and money laundering, accused of misappropriating $11 million from Netflix to fund luxurious purchases such as high-end cars, antique furniture, and lavish mattresses.
Allegations of Misuse of Funds
Rinsch allegedly requested the funds to complete “White Horse,” a sci-fi series that ultimately remained unfinished. Instead, he purportedly diverted the money for risky investments, stays at the Four Seasons, and engaged in legal disputes against Netflix, as stated in the indictment.
Details Surrounding Rinsch’s Arrest
The 47-year-old Rinsch was apprehended on Tuesday in West Hollywood, according to a statement from the U.S. Attorney’s Office for the Southern District of New York.
Netflix’s Response
Netflix chose not to provide a comment regarding the situation.
Background of the Case
Initial reports of the allegations emerged in a New York Times article in November 2023 and are detailed in an arbitration ruling made public the previous August. Rinsch was ordered to repay $11.8 million, a decision which was confirmed by a Los Angeles Superior Court judge in November.
Development of the “Conquest” Series
Rinsch first proposed the show, referred to as “Conquest,” to Netflix executives in January 2018. With the backing of actor Keanu Reeves, who acted as his mentor, he filmed six short episodes alongside a three-minute trailer. Netflix committed to a $44 million investment to produce the series, with filming set to take place in multiple global locations in 2019.
Production Challenges and Financial Mismanagement
As filming began in Brazil, Rinsch quickly exceeded the budget. Despite his promise to deliver additional episodes, he later informed Netflix that he could only finish one episode. Following a brief halt in production, Netflix agreed to provide further funding. Production ultimately ceased in December 2019. Rinsch then requested an additional $11 million to finalize the first season, which Netflix agreed to as a last effort to save the project.
Misappropriation of Funds
The indictment claims that Rinsch quickly transferred most of the funds into his brokerage account, where he reportedly lost significant sums in risky investments, while still assuring Netflix about the project’s progress. Following that, he invested in cryptocurrency, gaining substantial profits and reportedly making extravagant purchases, including high-end mattresses, furniture, and luxury cars, ostensibly for a second season that had not been ordered. The indictment includes charges of wire fraud, money laundering, and several counts of using illicit funds, putting Rinsch at risk of a lengthy prison sentence and asset forfeiture.
