Hollywood director arrested for cheating Netflix of $ 11m

Hollywood Carl Erik Rinsch director

New York, March 19, (AP): A writer and director of Hollywood was arrested on Tuesday for charges that she cheated $ 11 million of Netflix for a science fiction show that was never issued, instead of directing the cash towards cryptocurrency investments and a series of luxurious purchases that included a fleet of rolls-Rayces 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.

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 program.

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.

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; $ 3.8 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, California, and had an initial judicial hearing on Tuesday.

He appeared in a federal court in Los Angeles with a turtle -neck sweater and jeans with shackles on his arms and legs. It was not declared in a plea and only spoke to answer the questions of a judge. When asked if he had read the accusation against him, he said “not to cover to cover”, but told the judge that he understood the charges.

The Judge Magistrate of the United States, Pedro V. Castillo, ordered him to release him later on Tuesday after he agreed to publish a bail of $ 100,000 to ensure that he will appear before the court in New York, where his accusation was presented.

His newly appointed lawyer, Annie Carney, refused to comment outside the court. She said during the hearing that she had not yet seen the prosecution’s evidence against Rinsch. By discussing the terms of her release, she said: “The accusations in this case are purely financial.”

The Rinsch court date in New York had not yet been established.

Netflix declined to comment.