Carl Erik Rinsch: Hollywood director arrested after allegedly spending $11m of Netflix's money on sports cars and luxury bedding

Carl Erik Rinsch, 47, has been charged with federal fraud and money laundering after Netflix gave him $11 million (£8.5m) to complete a new series for the streaming platform called White Horse. Mr Rinsch received $44m from the company to begin work on the series between 2018 and 2019, but the filmmaker failed to complete a single episode.

The indictment itself did not name Netflix, instead referring to the company as a “subscription video on-demand streaming service”. However, Mr Rinsch has been engaged in a long-running dispute with Netflix over a number of years, which has been publicised in the US media.

Prosecutors said that a further $11m was given to him by Netflix executives in March 2020 after Mr Rinsch argued that the initial budget was “not sufficient”. However, it has since been alleged that Mr Rinsch transferred the money to his own personal bank account and spent half of the $11m in only two months on what has been described as “extremely risky investments”, including cryptocurrency.

Court documents allege that Mr Rinsch told Netflix that the White Horse series was “moving forward really well” while he was “in the process of losing” the money the company had provided. He is also accused of making other lavish purchases with the remainder of the $11m cash injection, including Rolls-Royce cars, a Ferrari sports car, antiques, and furniture, including $933,000 on mattresses and luxury bedding.

The court indictment also alleges that the director used $1m of the fund to pay lawyers, who were employed to sue Netflix for more cash and also to facilitate a divorce. Prosecutor Matthew Podolsky said: "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. But that was fiction."

Mr Rinsch, who could face 20 years in prison if found guilty, declined to enter a plea when he appeared at court in Los Angeles on Tuesday, March 18. He was released on a $100,000 bail and is expected to attend a later trial date in New York.

Who is Carl Erik Rinsch - what films has he made?

Carl Erik Rinsch is an American film director and filmmaker. The 47-year-old’s only feature film to be released was 47 Ronin.

47 Ronin was released in 2013 and starred Keanu Reaves, and follows a group of samurai who set out to avenge the death of their master. The film was not warmly rated by critics, currently holding a 16% critics rating on Rotten Tomatoes, as well as a 48% audience score.

The film was also a flop at the box office, returning a haul of just over $150m on a budget of between $175m and 225m.