Netflix, one of the biggest streaming companies in the world, trusted filmmaker Carl Erik Rinsch with millions of dollars to create a new TV series. But instead of making the show, he allegedly used the money to buy expensive cars, fancy furniture, and risky investments.
The U.S. Department of Justice (DOJ) says that Rinsch received a total of $55 million from Netflix. This money was supposed to go toward producing a sci-fi series called White Horse. However, after spending millions, the show was never completed, and the money was never returned.
According to prosecutors, Rinsch didn’t use the final $11 million from Netflix to finish the project. Instead, he allegedly transferred the money to different accounts and spent it on personal luxuries. Now, he is facing serious criminal charges, including wire fraud and money laundering, and could be sentenced to decades in prison.
How the Money Disappeared
When Netflix agreed to fund White Horse, they expected a high-quality series in return. But after sending $44 million, the show was only partially done. To help finish it, Netflix sent another $11 million to a company controlled by Rinsch. However, the DOJ says this money never went toward the show.
Instead, within days of receiving it, he allegedly moved the money into different bank accounts. Then, he reportedly used a large portion of it for risky investments in stocks and cryptocurrency, which quickly lost millions.
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According to investigators, he spent the remaining money on extravagant personal expenses:
- Over $3.7 million on furniture and antiques
- Nearly $1 million on beds and linen
- $2.4 million on luxury cars, including five Rolls-Royces and a Ferrari
- $650,000 on designer watches and clothing
- Hundreds of thousands of dollars on luxury hotels and vacation rentals
Prosecutors say that in just two months, he had already lost more than half of the $11 million due to bad investments. The rest was allegedly spent on luxury items instead of completing the TV series.
FBI Investigation and Legal Consequences
The FBI launched an investigation into the missing Netflix funds and found that Rinsch never delivered the promised show. Instead, he allegedly used Netflix’s money for his personal gain.
Now, he has been arrested and charged with multiple counts of fraud and money laundering. Prosecutors say that this case is a clear example of how people try to take advantage of large companies by making false promises.
The Acting U.S. Attorney overseeing the case stated that the DOJ and FBI are committed to stopping fraud and bringing criminals to justice. If found guilty, Rinsch could face several decades in prison.
This case serves as a warning to companies and investors about the dangers of trusting the wrong people with large sums of money. Meanwhile, White Horse remains unfinished, and Netflix is left with millions of dollars lost.
