Renowned Hollywood director Carl Erik Rinsch has been charged with fraud related to Netflix funding for his project.
Fraud Charges
Carl Erik Rinsch, director of the film '47 Ronin' starring Keanu Reeves, was arrested and indicted on fraud charges linked to an $11 million deal with Netflix for producing a science fiction series 'White Horse.' The indictment, announced by acting U.S. Attorney for the Southern District of New York Matthew Podolsky and Leslie Backschies, assistant director of the FBI’s New York Field Office, alleges illegal use of the funds for trading cryptocurrencies and stocks.
Use of Funds
Rinsch secured $44 million in 2018 to fund the show's production and, between 2019 and 2020, obtained an additional $11 million, which was transferred to a company wholly controlled by him. Rather than using the funds for 'White Horse,' Rinsch allegedly moved the $11 million through a network of accounts, ultimately depositing the funds into his personal brokerage account. Reports claim he lost over half of the capital within the first two months of trading and spent about $5.3 million suing Netflix, paying credit card bills, and acquiring one Ferrari and five Rolls-Royces. Despite initial losses, Rinsch reportedly reinvested in Dogecoin, making $27 million in profits.
Potential Penalties
Rinsch, now 47, faces up to 20 years in prison for one count of wire fraud alone. Other charges, including money laundering and unlawful activity, could each carry sentences of 10 to 20 years if maximum penalties are imposed by a Los Angeles Court. A court date has not been set yet. Rinsch was released on a $100,000 bail bond by the order of U.S. Magistrate Judge Pedro V. Castillo.
The case against Carl Erik Rinsch remains under consideration, awaiting the court date, while the fraud charges and potential prison terms draw public attention.
