Hollywood filmmaker accused of defrauding Netflix in a $ 11 million scheme – GV Wire

New York-A writer and director of Hollywood was arrested Tuesday for charges that she scammed $ 11 million of Netflix for a science fiction program that was never issued, instead of directing cash towards cryptocurrency investments and a series of luxurious purchases that included a roll of rolls-Royces and a Ferrari.

Carl Erik Rinsch, perhaps better known for directing the film “47 Ronin”, has been accused of electronic fraud and money laundering for which federal prosecutors claim that it was a scheme to disappoint the transmission giant.

It is not clear if Rinsch has hired a lawyer. Netflix declined to comment.

Netflix’s initial investment and additional financing

The prosecutors said that Netflix had initially paid around $ 44 million to buy an unfinished show called “White Horse” of Rinsch, but finally distributed another $ 11 million after he said he needed the additional cash to complete the show.

Instead of using extra money to conclude production, Rinsch silently transferred the money to a personal brokerage account, where he made a series of failed investments that lost approximately half of the $ 11 million in two months, according to prosecutors.

Cryptocurrency investments and personal expenses

The filmmaker then threw the rest of the money into the cryptocurrency market, which proved to be a profitable movement, and Rinsch finally transferred the profits to a personal bank account, according to an accusation.

From there, Rinsch spent about $ 10 million on personal expenses and luxury articles on a wave of expenses that, according to prosecutors, included around $ 1.8 million in credit card invoices; $ 1 million in lawyers to sue Netflix for more money; $ 3.7 million in furniture and antiques; $ 2.4 million for five Rolls-Royces and a Ferrari; and $ 652,000 in watches and clothing.

Rinsch, 47, was arrested at West Hollywood and will appear at a federal court in California later on Tuesday, authorities said. His accusation was presented in New York.