Hollywood Director Arrested for Allegedly Cheating Netflix Out of $11M

Hollywood writer and director Carl Erik Rinsch finds himself in the spotlight for all the wrong reasons. Arrested in West Hollywood, California, Rinsch faces wire fraud and money laundering charges after allegedly running a scheme that defrauded Netflix out of a whopping $11 million.

According to prosecutors, Netflix initially paid Rinsch $44 million for his unfinished project "White Horse." However, he requested an additional $11 million to complete the show. Instead of funneling the funds into production, Rinsch allegedly transferred the money to his personal accounts, indulging in cryptocurrency investments, luxury cars, and other high-end purchases.

The indictment reveals that half of the $11 million was lost within two months due to risky crypto investments. Yet, his luck turned when the remaining funds generated profits, which he transferred back to his personal accounts. If cryptocurrency had a motto, it might be "win some, lose some—and then lose a lot more."

Prosecutors claim Rinsch’s spending spree included $1.8 million on credit card bills, $1 million on legal fees to sue Netflix for even more money, $3.8 million on furniture and antiques, $2.4 million on five Rolls-Royces and one Ferrari, and $652,000 on watches and clothes. That’s a shopping list to rival the world’s most extravagant lifestyles, right?

Rinsch appeared in court wearing a turtleneck sweater and jeans, with shackles on his hands and ankles—an outfit choice that screamed "Hollywood meets reality." U.S. Magistrate Judge Pedro V. Castillo released him on a $100,000 bond.

Annie Carney, Rinsch's attorney, described the allegations as "purely financial"—a statement that might win the award for understatement of the year. She declined to comment further outside the courtroom.

Rinsch’s next court appearance will be in New York, where the indictment was filed, though no date has been set. Until then, the director’s unfinished show "White Horse" remains, well, just that—a white horse grazing in the meadows of unfulfilled promises.