Filmmaker Carl Erik Rinsch was taken into custody on Tuesday, accused of defrauding Netflix of $11 million for a science fiction series that was never produced, according to federal authorities. Although the indictment and news release did not specifically name Netflix, the conflict between the 47-year-old filmmaker and the streaming service has been widely covered since a November 2023 report by The New York Times.
In 2018 and 2019, Netflix, described by prosecutors as "a subscription video on-demand streaming service," paid Rinsch's company $44 million for a show titled "White Horse," which was never made. Despite Rinsch's limited filmography, having directed only "47 Ronin," there was significant interest in his proposed series about artificial humans, as reported by the Times.
In March 2020, Rinsch requested an additional $11 million from Netflix, claiming the initial funds were inadequate to finish the series. However, prosecutors allege that Rinsch did not use this money to produce "White Horse," which Netflix had renamed "Conquest." Instead, he allegedly funneled the money through various accounts before consolidating it into a personal brokerage account, where he made unsuccessful trades.
Prosecutors state that within two months, Rinsch lost half of the $11 million and spent the rest on cryptocurrency, personal expenses, and luxury items, including legal fees, furniture, antiques, luxury cars, and high-end watches and clothing. He never returned the money, and Netflix canceled the project in early 2021.
Acting U.S. Attorney Matthew Podolsky commented on the case, saying Rinsch devised a scheme to misappropriate millions by claiming the funds were for a TV show. Podolsky emphasized that Rinsch's arrest highlights the ongoing efforts to combat fraud.
Netflix declined to comment on the situation, and it is unclear if Rinsch has legal representation. His talent agent did not respond to requests for comment. Rinsch, arrested in West Hollywood, California, faces charges including wire fraud, money laundering, and engaging in unlawful monetary transactions. The Complex Frauds and Cybercrime unit is handling the prosecution.
The arrest follows an arbitration ruling less than a year ago, where Netflix was awarded $8.8 million in damages after Rinsch claimed the company breached their contract. Former Los Angeles Superior Court Judge Rita Miller determined that Rinsch's purchases were not necessary for the show's production, as reported by The New York Times.