A well-known Hollywood director, Carl Erik Rinsch, 47, has been charged in court with fraud and money laundering involving $11 million (RM51 million) given by Netflix.
According to a BBC report, the money was meant to complete a sci-fi series called White Horse, but Rinsch is accused of misusing it to buy luxury cars, cryptocurrency, and other lavish items, including an expensive mattress.
Carl Erik Rinsch, previously known for the film 47 Ronin (2013), appeared in a Los Angeles court last Tuesday but refused to enter any plea.
Although the charging documents don’t directly name Netflix, they refer to a “video-on-demand streaming service.” The dispute between Rinsch and Netflix over the failed project had already caught the attention of American media before this.
Between 2018 and 2019, Rinsch received an initial budget of $44 million from Netflix to produce the series, but he didn’t complete even a single episode.
In March 2020, Netflix gave an additional $11 million after he claimed the original budget wasn’t enough. However, according to the U.S. Department of Justice, the money was allegedly transferred to his personal account for risky investments and extravagant spending.
Just two months after receiving the extra funds, half of the money was already spent. Even more shocking, as the cash dwindled, Rinsch still told Netflix that the White Horse project was “awesome and moving forward really well.”
Court documents also revealed Rinsch’s lavish spending, including buying several Rolls-Royces, a Ferrari, antiques worth $3.7 million, a luxury mattress costing $933,000, and paying off $1.8 million in credit card bills.
In fact, $1 million was even used to pay lawyers to sue Netflix and cover divorce costs.
A previous New York Times report also revealed that Rinsch is believed to have shown strange behavioral changes, including believing he could predict lightning, volcanic eruptions, and knowing the ‘secret mechanics’ behind the spread of Covid-19.
He has now been released on a $100,000 bail and will face trial in New York. If found guilty, he could face up to 20 years in prison. – BOOM!
