A successful Hollywood director faces charges of money laundering, wire fraud, engaging in monetary transactions in property derived from specified unlawful activity, and allegedly defrauding a streaming company of millions.
Carl Erik Rinsch, who directed “47 Ronin,” was arrested in Los Angeles on March 18, after he was indicted by The FBI's New York Field Office and the Acting U.S. Attorney of the Southern District of New York.
The case is being prosecuted by the New York Attorney General’s Office of Complex Frauds and Cybercrime Unit.
Rinsch is charged with one count of wire fraud, one count of money laundering, and five counts of engaging in monetary transactions in property derived from specified unlawful activity.
In legal documents, Rinsch is accused of promising streaming giant Netflix that he would use funds they provided to him to produce a new sci-fi show. However, the suit alleges that he instead used those funds for personal purposes, including legal fees, cryptocurrency investments, a fleet of Rolls-Royces, a Ferrari and more.
The charges include misuse of about $11 million.
Prosecutors said Netflix had first paid the director about $44 million to purchase an unfinished sci-fi series called “White Horse.” Netflix told prosecutors they later paid Rinsch another $11 million after he requested more money to complete the show. The prosecutors allege Rinsch did not use the funds for the promised sci-fi show but instead transferred the money to a personal brokerage account.
In the indictment, prosecutors claim that the director did not complete the production and claim he engaged in a series of failed investments, losing almost half of the $11 million in two months. The authorities allege that after losing the money, he put the rest of the funds in the cryptocurrency market, which was profitable, and then transferred those funds to his personal bank account.
The breakdown of Rinsch’s alleged illegal spending spree was listed in the indictment and included: $10 million for his personal benefit, including $1.8 million in credit card purchases; another $1 million on lawyers that was earmarked for him to sue Netflix for more funding; $2.4 million for five Rolls-Royces and one Ferrari; $3.8 million on antiques and furniture; and $652,000 on watches and clothes.
The director appeared before U.S. Magistrate Judge Pedro V. Castillo after he was arrested in West Hollywood. Authorities had placed shackles on his arms and legs.
Rinsch posted a bail of $100,000 to ensure his appearance in court in New York, where the indictment was filed. A date for the hearing has not yet been scheduled.
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