Netflix defrauded of $11M by Hollywood director in shocking scam; know modus operandi

Hollywood director Carl Erik Rinsch, known for '47 Ronin', was arrested Tuesday in West Hollywood for allegedly defrauding Netflix of $11 million. Federal prosecutors charged him with wire fraud and money laundering, accusing him of diverting funds meant for a sci-fi series into luxury purchases and risky investments, as per a report by The New York Times.

Case Background

In 2018, Netflix entered into an agreement with director Carl Erik Rinsch, known for the 2013 film ‘47 Ronin,’ to produce a science-fiction series titled ‘White Horse,' later renamed 'Conquest.'

The streaming giant invested approximately USD 44 million into the project, with plans for a 12-episode series. 

The Scheme Unfolded

Rinsch requested an additional USD 11 million, citing the need for more funds to complete the series. However, instead of allocating these funds to production, he allegedly diverted them into personal brokerage accounts.

Prosecutors state that Rinsch engaged in speculative investments, losing over half of the USD 11 million within two months. Subsequently, he invested in the cryptocurrency market, which yielded profits that he transferred to his personal bank account.

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Lavish Spending Spree

Rinsch allegedly spent USD 10 million on luxury items, including:

1. Five Rolls-Royces and a Ferrari (USD 2.4 million)
2. Designer watches and clothing (USD 652,000)
3. Antique furniture (USD 3.8 million)
4. Credit card bills (USD 1.8 million)
5. He also used USD 1 million to sue Netflix for more funds, as per court documents.

Legal Proceedings

On March 18, 2025, Rinsch was arrested in West Hollywood, California, facing charges of wire fraud and money laundering. He appeared in a Los Angeles federal court, where he was released on a USD 100,000 bond, with proceedings set to continue in New York.
If convicted, Rinsch faces up to 20 years for wire fraud and money laundering, plus 10 years per additional charge.

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Till the last media reports, Netflix has yet to comment on the case.