Netflix director ‘spent $11,000,000 on items like mattresses’ instead of sci-fi series-Ruth Lawes-Entertainment – Metro

Carl Erik Rinsch was arrested in Hollywood earlier this week (Picture: John Sciulli/Getty Images for Team One, Saatchi LA)

A Hollywood director has been arrested and charged with defrauding Netflix out of $11,000,000 (£8,473,000).

The streamer had given Carl Erik Rinsch, 47, the eight-figure sum to produce a planned sci-fi TV series called White Horse.

However, the United States Attorney’s Office has claimed instead he splashed the money on ‘personal expenses and luxury items’, as well as cryptocurrency.

These allegedly include luxury bedding and linens, five Rolls-Royces and one Ferrari, a stay at a Four Seasons hotel and furniture and antiques.

It has also been alleged Rinsch spent $638,000 (£491,671) to purchase two mattresses.

In 2018, Rinsch signed a deal with Netflix in which the streamer agreed to pay for existing episode of White Horse and also fund the completion of the rest of the series.

Between 2018 and 2019, Netflix paid approximately $44 million (£33.9m) for White Horse.

Rinsch then demanded more money from Netflix and it ultimately agreed to pay another $11m (£8.5m), which was transferred around March 2020.

Acting US Attorney Matthew Podolsky said: ‘As alleged, 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.

‘Rinsch instead allegedly used the funds on personal expenses and investments, including highly speculative options and cryptocurrency trading.

‘Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud and will bring those who cheat and steal to justice.’

Rinsch is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and five counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum sentence of 10 years in prison. 

Rinsch was arrested in West Hollywood, California, and had an initial court hearing on Tuesday.

According to the Associated Press, he did not enter a plea and spoke only to answer a judge’s questions. He said he had not read the indictment ‘cover to cover’ but understood the charges against him.

Rinsch was released after posting a $100,000 (£77,000) bond. He will next appear in court in New York, where the indictment was filed. That court date has not yet been set.

In 2013, Rinsch made his first and only feature film 47 Ronin, a fantasy adaptation of the Japanese historical epic of the Forty-seven Ronin. It starred Keanu Reeves, Hiroyuki Sanada and Rinko Kikuchi.

Metro has contacted Netflix for comment.

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