Carl Erik Rinsch, the director of 47 Ronin starring Keanu Reeves, has been charged with defrauding Netflix of $11 million, allegedly using the funds to invest in cryptocurrencies and high-end luxury items.
Fraud Allegations and Netflix Investment
Rinsch, a Hollywood director and screenwriter, was arrested and indicted on multiple fraud charges linked to a deal with Netflix for a science fiction TV series titled White Horse. According to the unsealed indictment, Rinsch had initially secured a $44 million investment package in 2018 to develop the series. However, between 2019 and 2020, he obtained an additional $11 million, which was transferred to a company under his sole control.
Rather than using the funds for the intended production of White Horse, authorities allege that Rinsch funneled the money through multiple accounts before transferring it into his personal brokerage account.
Crypto Trading and Lavish Spending
The indictment, announced by acting U.S. Attorney for the Southern District of New York Matthew Podolsky and Leslie Backschies, assistant director of the FBI’s New York Field Office, details how Rinsch allegedly misused the funds for personal trading in stocks and cryptocurrencies.
Within two months of his initial trades, Rinsch had reportedly lost over half of the capital. Authorities further claim that he spent approximately $5.3 million on legal battles against Netflix, credit card payments, and acquiring high-end vehicles, including one Ferrari and five Rolls-Royces.
Dogecoin Windfall
Despite his initial trading losses, Rinsch allegedly reinvested in digital assets, striking a significant profit from Dogecoin. Prosecutors claim that a $4 million investment in Dogecoin resulted in a $27 million profit. The funds were reportedly transferred to a Kraken exchange account from a Schwab Bank deposit, according to The New York Times.
Legal Consequences
Rinsch, now 47, faces severe legal repercussions. A single count of wire fraud alone carries a maximum sentence of 20 years in prison. Additional charges, including money laundering and other financial crimes, could each result in sentences ranging from 10 to 20 years.
A Los Angeles court has not yet set a trial date. Rinsch has been released on a $100,000 bail bond, as ordered by U.S. Magistrate Judge Pedro V. Castillo.
The case highlights the ongoing scrutiny over financial mismanagement in Hollywood and the risks of fraudulent investment in emerging digital assets.
