Breaking: Director Carl Rinsch Faces Indictment for Allegedly Defrauding Netflix of $11 Million

Carl Erik Rinsch, a director, is facing serious legal trouble. He has been charged with fraud and money laundering after allegedly misappropriating $11 million from Netflix. Instead of using the funds for his sci-fi series “White Horse,” he reportedly splurged on luxury cars, antique furniture, and even sleep-optimized mattresses.

The indictment claims Rinsch sought these funds to finish "White Horse," but instead, he made high-stakes investments and spent lavishly on experiences, including stays at the Four Seasons. His legal battles with Netflix, which included suing the company, also consumed part of this money.

Rinsch, 47, was arrested in West Hollywood. The story first broke in a New York Times article in November 2023. His issues began when he was ordered in August to repay $11.8 million through an arbitration ruling, which a Los Angeles judge backed in November.

This saga began in January 2018 when Rinsch pitched “White Horse” to Netflix, with investment support from actor Keanu Reeves. Netflix agreed to fund the series with $44 million, planning shoots across several countries. However, Rinsch quickly went over budget while filming in Brazil and initially failed to deliver on his commitments to Netflix.

Things took a turn when production halted in December 2019. Rinsch requested an additional $11 million, claiming he needed the funds to complete the series. Netflix reluctantly complied in March 2020, but the COVID-19 pandemic disrupted everything.

During a meeting with Netflix executives amid the pandemic, Rinsch shared tangents on various philosophical topics rather than updates on the show. This led Netflix to question his commitment to finishing the project, and soon, key actors left the production.

The indictment reveals that Rinsch quickly transferred much of the $11 million into his brokerage account, where he lost nearly half on risky trades. Despite this, he reassured Netflix that the project was progressing well. He later invested in cryptocurrency and even found success, but still spent extravagantly, claiming it was necessary for a season that Netflix hadn’t approved.

His lavish expenditures included $638,000 on luxury mattresses, $295,000 on bedding, and millions on furniture and cars, including multiple Rolls Royces.

These actions have led to serious charges: wire fraud, money laundering, and illegal fund transactions. Rinsch could face significant prison time, and authorities are seeking to seize his assets.

Interestingly, this case highlights a troubling trend in the entertainment industry where big budgets can lead to risky decisions. It also raises questions about the responsibilities of creators towards their investors. The Netflix saga is a reminder of the delicate balance between creativity and financial accountability.

For more on this story, you can read the official indictment details from the U.S. Attorney’s Office and the New York Times coverage.

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Carl Rinsch,Netflix