A Hollywood director has been arrested in West Hollywood, California, on charges of fraud and money laundering after allegedly misusing millions of dollars intended for a sci-fi Netflix television series.
According to federal prosecutors, in charges filed in New York, Carl Erik Rinsch, 47, is accused of diverting funds meant for production into personal luxury purchases. These include high-end cars, cryptocurrency investments, and expensive furniture.
Authorities say a major streaming service provided Rinsch with $44 million between 2018 and 2019 to produce White Horse, a science-fiction series about human clones. However, prosecutors allege that he failed to complete even a single episode.
“Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating,” prosecutor Matthew Podolsky said Tuesday. Instead, he spent the money on himself.
Rinsch requested additional funding in March 2020, claiming the original budget was insufficient. The streaming service reportedly transferred another $11 million to support production.
Instead, the court documents allege Rinsch funneled the money into his personal accounts and engaged in speculative financial ventures. The US Justice Department states that nearly half of the newly acquired funds had been spent within two months.
Court documents reveal that he engaged in high-risk stock market investments, resulting in the loss of approximately half of the funds during that time. Subsequently, he invested in cryptocurrency markets, which yielded profits that he transferred to his personal bank account.
Carl Erik Rinsch, a hired Netflix movie director, also the director of the movie 47 Ronin, was arrested for fraud. Erik Rinsch was paid to direct and produce a Netflix Sci-Fi movie, didn’t produce the movie, but lavished it and invested in cryptocurrency. Lost all the money to it pic.twitter.com/FOL5HBxLYu
— Bright Felix (@WritersAi_) March 20, 2025
While struggling financially, Rinsch allegedly assured the streaming company that the project was “awesome and moving forward really well”. Prosecutors say he used the remaining funds to buy cryptocurrency and luxury items, including multiple Rolls-Royces, a Ferrari, and high-end furniture.
Legal filings show that his spending spree included $1.8 million on credit card bills, $3.7 million on furniture and antiques, $933,000 on luxury bedding and mattresses, $1 million on legal fees, and efforts to sue the streaming service for additional funds and pay for his divorce.
Prosecutors claim that instead of completing the project, Rinsch orchestrated an elaborate scheme to misuse studio funds for personal enrichment.
A 2023 New York Times report said colleagues and friends described Rinsch’s behavior as increasingly erratic following his deal with the streaming service. The report states that he believed he could predict lightning strikes and volcanic eruptions and claimed to know of a “secret transmission mechanism” for Covid-19.
Rinsch made his initial court appearance in Los Angeles on Tuesday. When asked by the judge if he had read the 12-page indictment, he reportedly replied, “Not cover to cover.”
He was released on a $100,000 bail and is expected to stand trial in New York. If convicted, he faces up to 20 years in prison on federal fraud and money laundering charges.
Netflix, which was linked to the White Horse project in previous media reports, has declined to comment on Rinsch’s arrest.
