Carl Erik Rinsch, director of the 2013 action fantasy film “47 Ronin,” has been indicted on charges of defrauding Netflix of $11 million.
Authorities allege that Rinsch misappropriated funds intended for a sci-fi series called “White Horse” about a scientist who creates a group of superintelligent clones. The name of the show, which was initially funded by two media companies, is a nod to one of the four horsemen of the apocalypse.
Rinsch began filming the show around 2016, completing about six short-form episodes. He later negotiated with various film and television streaming platforms to sell “White Horse,” ultimately reaching a deal with Netflix.
The streaming service doled out about $44 million to Rinsch between 2018 and 2019 to buy the existing episodes as well as fund the project’s completion.
However, at the end of 2019, Rinsch allegedly requested more money, leading the streaming giant to transfer an additional $11 million to the director in March 2020.
“Instead,” the statement said, “within days, Rinsch began transferring the funds he received through a number of different bank accounts before consolidating them in a personal brokerage account.”
The indictment states that Rinsch used some of the funds to engage in securities trading, including call options on a biopharmaceutical company, losing more than $5.5 million in less than two months.
He then used the remaining funds to buy cryptocurrency, the indictment said.
“Over the course of the next several months, Rinsch made several million dollars trading that cryptocurrency, and used those funds for personal expenses and to purchase luxury goods,” the indictment said.
Rinsch is accused of spending a little more than $1 million on lawyers’ fees and nearly $1.8 million to pay off credit card bills. He also allegedly used the funds to buy a number of luxury items, including watches, clothing, furniture, antiques, and upscale vehicles, including five Rolls-Royces and one Ferrari, which were collectively valued at more than $2.4 million.
“Carl Rinsch allegedly stole more than $11 million from a prominent streaming platform to finance lavish purchases and personal investments instead of completing a promised television series,” FBI Assistant Director Leslie Backschies said in a statement.
Rinsch was charged with five counts of engaging in monetary transactions in property derived from specified unlawful activity, each punishable by up to 10 years in prison. He also faces one count of wire fraud and one count of money laundering, both of which carry a maximum sentence of 20 years in prison.
“As alleged, Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating. But that was fiction,” Acting U.S. Attorney Matthew Podolsky said in a statement.
A representative for Rinsch could not be reached for comment. The Epoch Times reached out to a representative for Netflix but a response was not received by publication time.
Rinsch’s 2013 film “47 Ronin,” starring Keanu Reeves and Hiroyuki Sanada, was his feature film directing debut.
Prior to that, Rinsch directed several short films, including “The Quiz” (1994), “Lovely Weather for Rain” (1996), and “The Gift” (2010). He later directed the music video for “Greyhound,” a 2012 song by the supergroup Swedish House Mafia.
