A Hollywood director has been accused of stealing AUD$17 million from Netflix for a sci-fi series that never aired, instead using it on cryptocurrency, lavish purchases, and even the legal costs of his divorce.
The US Justice Department has charged director Carl Erik Rinsch with a number of offences, including wire fraud, money laundering and multiple counts related to engaging in transactions stemming from illegal activity, per The Hollywood Reporter.
And if his name sounds familiar, you might recognise him as the director of the 2013 fantasy action film 47 Ronin starring Keanu Reeves.
According to an indictment filed in New York on Wednesday (local time), Rinsch allegedly demanded the AUD$17 million (US$11 million) from Netflix to finish his sci-fi series White Horse, which was never completed.
Along with the “extremely risky investments” in cryptocurrency, the money allegedly went towards lavish purchases such as luxury bedding and linens, furniture, five Rolls Royces, one Ferrari, the rent of his home in Spain, and paying lawyers for his divorce.
The director allegedly “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,” said Matthew Podolsky, acting United States attorney for the Southern District of New York, in a statement.
“But that was fiction. Rinsch instead allegedly used the funds on personal expenses and investments, including highly speculative options and cryptocurrency trading.”
The streaming giant wasn’t identified by prosecutors as the defrauded company, but the indictment references White Horse which Netflix acquired back in 2018.
As reported by Variety, court records suggest the 47-year-old first pitched the show in January 2018 to Netflix executives. He had already received investors like Keanu Reeves and shot six short episodes and a three-minute trailer.
Netflix agreed to invest almost $70 million to acquire the series and produce the first season, which would be shot over several months in Kenya, Uruguay, Mexico, Hungary, Romania and Berlin in 2019.
However, he quickly went over budget and informed Netflix he would only be able to complete one more episode with the money provided, although he had initially promised to deliver seven more.
Production halted later that year and Rinsch demanded an additional $17 million to complete the season, which Netflix agreed to pay, the publication reported. This was intended for various pre and postproduction projects, including paying crew and editing footage that had already been shot.
When the Covid-19 pandemic shut down production and executives were no longer convinced he would finish the show — and the lead actor dropped out — Netflix allegedly decided to write off the cost of the season.
Per the indictment, Rinsch transferred most of the $17 million to a brokerage account. It’s understood he was still reassuring Netflix that the show was moving forward at this time.
The director appeared in a federal courtroom on Wednesday, 19 March (local time) and agreed to post a US$100,000 bond to assure he would appear in court in New York, where his indictment was filed, The Nightly reported.
His New York court date has not yet been set.
Lead image: iStock
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