Federal Authorities Charge Filmmaker for Stealing $11M from Netflix to Invest in Crypto and Stocks

Mar 19, 2025 - 15:43

Mar 29, 2025 - 14:45

Federal Authorities Charge Filmmaker for Stealing $11M from Netflix to Invest in Crypto and Stocks

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U.S. prosecutors have charged Carl Erik Rinsch with using $11 million of Netflix’s funds for stocks and crypto, rather than completing a science fiction TV show he was producing.

U.S. federal authorities have arrested and indicted filmmaker Carl Erik Rinsch, accusing him of misusing $11 million provided by Netflix to gamble on stocks and cryptocurrency instead of funding a science fiction TV show.

The Department of Justice (DOJ) unsealed an indictment in a Manhattan federal court on March 18, charging Rinsch with fraud and money laundering. He faces up to 20 years in prison if convicted.

According to the indictment, Netflix, though not named in the complaint, gave Rinsch $11 million in March 2020 to fund the production of the sci-fi TV show "White Horse," later renamed "Conquest," covering storyboarding, actor payments, and footage editing.

Instead, prosecutors allege that Rinsch transferred about $10.5 million into a brokerage account, where he made high-risk trades, including call options on a biopharmaceutical company, losing over $5.5 million.

While assuring Netflix that "Conquest" was progressing well, Rinsch was reportedly losing the company's money. Prosecutors also claim that he had more success with cryptocurrency, making several million dollars from crypto trading in February 2021, which he used to buy nearly $3.8 million worth of furniture, antiques, five Rolls-Royces, a Ferrari, watches, and luxury clothing totaling over $3 million.

*Excerpt of the DOJ’s lawsuit filed against Carl Erik Rinsch. Source:* *DOJ*

The U.S. Attorney's Office did not explicitly name Netflix as the streaming company behind Conquest in the indictment, but The New York Times reported on a dispute between Netflix and Rinsch over the show in November 2023. The report stated that Netflix canceled the show in early 2021 after Rinsch's behavior became "erratic."

According to The Times, Netflix paid Rinsch $55 million, while prosecutors claim he received $44 million to produce the show, which has not yet aired.

U.S. prosecutors also accused Rinsch of spending nearly $1.8 million on credit card bills and $1 million in legal fees to sue Netflix for additional funds and cover costs related to his divorce.

Rinsch faces one count of wire fraud, one count of money laundering, and five counts of engaging in monetary transactions involving property derived from specified unlawful activity.

Each of the fraud and money laundering charges carries a maximum sentence of 20 years, while each of the monetary transactions charges carries a maximum sentence of 10 years.

Rinsch was arrested on March 18, and his case has been assigned to U.S. federal court Judge Jed Rakoff in New York.

According to the Associated Press on March 18, Rinsch’s attorney, Annie Carney, declined to comment outside of court.