A filmmaker is facing charges after allegedly misusing money meant for a Netflix-backed project, according to a statement from the US Attorney’s Office on March 18.
Authorities say Carl Erik Rinsch received millions to develop a science fiction series but instead used a large portion of the funds for high-risk trading and expensive purchases.
Rinsch was arrested on March 18 and faced multiple charges, including wire fraud, money laundering, and illegal financial transactions.
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Federal prosecutors claim Netflix sent Rinsch $11 million in March 2020 to cover costs like storyboarding, paying actors, and editing footage for the series, originally called White Horse and later renamed Conquest.
However, instead of funding production, he reportedly moved about $10.5 million into a brokerage account. He made risky investments, including betting on a biopharmaceutical stock, which led to losses of over $5.5 million.
Rinsch continued reassuring Netflix that the series was progressing well, prosecutors said. His trading luck changed in February 2021 when he made several million dollars from cryptocurrency. Rather than reinvesting in the show, authorities say he spent nearly $3.8 million on furniture, high-end watches, antiques, designer clothing, and luxury cars.
Court records indicate Rinsch also used about $1.8 million to pay credit card bills and spent $1 million on legal fees. Some of that money reportedly went toward suing Netflix for additional payments, while the rest covered divorce-related costs.
Rinsch could receive a maximum prison sentence of 20 years for fraud and money laundering, with additional penalties for the financial transaction charges.
Meanwhile, the Federal Bureau of Investigation (FBI) recently offered a $10 million bounty for information leading to the capture of ex-Olympian Ryan Wedding. What is he accused of? Read the full story.
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