Netflix's "47 Ronin" director Carl Erik Rinsch faces serious legal trouble after allegedly misusing $11 million meant for his show "White Horse." Instead of making TV magic, he went on an epic spending spree – snagging five Rolls-Royces, a Ferrari, and millions in luxury goods. After losing big in stocks, he turned to crypto trading for profit. Now facing wire fraud charges and up to 90 years in prison, his next production might be from behind bars. The full story gets even wilder.
While Hollywood directors are known for their expensive tastes, Carl Erik Rinsch took things to a whole new level of extravagance – with other people's money.
From private jets to luxury cars, Hollywood's elite live large – but Rinsch played fast and loose with Netflix's millions.
The "47 Ronin" director has been arrested in West Hollywood on charges of wire fraud, money laundering, and misuse of criminal proceeds after allegedly turning Netflix's $11 million investment into his personal piggy bank.
The streaming giant had already poured $44 million into Rinsch's sci-fi series "White Horse," a show about superintelligent clones in Brazil that – shocker – never made it to screens. The sci-fi TV series was highly anticipated by Netflix executives before its ultimate failure.
When Netflix reluctantly handed over an additional $11 million to complete the project, Rinsch apparently had other plans. Within weeks, he managed to lose more than half of it in the stock market.
But wait, there's a plot twist! He then dove into cryptocurrency trading and somehow turned his losses into profits. Like many early crypto investors, his market sentiment drove dramatic price fluctuations in his favor. Good news for him, bad news for Netflix.
Instead of putting the money back into the show, Rinsch went on a spending spree that would make a lottery winner blush. Five Rolls-Royces? Check. A Ferrari? Why not! He spent approximately $2.4 million dollars on luxury vehicles alone.
Add some designer clothes, luxury furniture, and high-end watches to the mix. The director dropped around $10 million on personal items, including fancy bedding and hotel stays. He even spent $1 million on legal fees – some of which went toward trying to sue Netflix for more money. The audacity is almost impressive.
Now facing up to 90 years in prison, Rinsch has been released on a $100,000 bond and is scheduled to appear in New York federal court.
His legal team emphasizes that the charges are purely financial in nature, though that's probably cold comfort to Netflix executives who watched their investment vanish into a black hole of luxury cars and cryptocurrency speculation.
The FBI investigation has traced the elaborate financial movements through various accounts, revealing a tale of misused funds that reads more like a Hollywood script than a production budget.
Unfortunately for Rinsch, this particular story might end in a federal prison rather than a premiere party.
