Carl Erik Rinsch, a filmmaker from Los Angeles, has been arrested and charged with fraud after allegedly misusing millions of dollars meant for a science fiction television show. Rinsch, who was working on a project called White Horse, received large sums of money from a popular streaming company to complete the series. However, instead of using the funds for production, he reportedly spent the money on luxury items, personal expenses, and risky investments.
Authorities say Rinsch originally secured around $44 million for the show between 2018 and 2019. Later, he requested even more money, claiming he needed an additional $11 million to finish the project. The streaming company agreed and transferred the funds in March 2020. But instead of working on White Horse, Rinsch allegedly transferred the money to his personal accounts and used it for extravagant purchases and financial speculations.
Lavish Spending and Failed Investments
Within days of receiving the extra $11 million, Rinsch started moving the money between different bank accounts. Eventually, he placed most of it in a brokerage account, where he began investing in stocks and other securities. Unfortunately, these investments were disastrous. In less than two months, he lost more than half of the money through unsuccessful trades.
Despite these losses, he did not redirect the remaining funds to complete White Horse. Instead, he allegedly spent millions on a luxurious lifestyle, including:
- $1.7 million on credit card bills
- $1 million on legal fees, including lawsuits against the streaming company and his divorce case
- $395,000 on hotel stays at the Four Seasons and other luxury rentals
- $3.7 million on high-end furniture and antiques, including $638,000 for two mattresses and $295,000 on bedding and linens
- $2.4 million on luxury cars, purchasing five Rolls-Royces and one Ferrari
- $652,000 on expensive watches and designer clothing
- $2 million on cryptocurrency speculation, which resulted in further financial losses
- $500,000 on private jet charters for personal travel
Instead of using the money for production, authorities say Rinsch treated the funds as his personal fortune.
Legal Trouble and Serious Charges
Law enforcement agencies, including the FBI and IRS, investigated the case, leading to Rinsch’s arrest in West Hollywood, California. He now faces multiple serious charges, including wire fraud and money laundering. If convicted, he could spend decades in prison.
He is charged with:
- One count of wire fraud, carrying a maximum sentence of 20 years in prison.
- One count of money laundering, also carrying a maximum sentence of 20 years.
- Five counts of engaging in monetary transactions with stolen money, each carrying a maximum sentence of 10 years in prison.
Federal officials emphasized that no one is above the law, and those who deceive businesses for personal gain will be held accountable. The case is being handled by the U.S. Attorney’s Office for the Southern District of New York, along with the FBI’s New York Field Office.
The charges serve as a reminder that financial fraud is taken seriously, and law enforcement agencies remain committed to exposing and prosecuting those who engage in these schemes. However, it is important to remember that charges are accusations, and Rinsch is presumed innocent unless proven guilty in court.
Authorities continue to investigate how the misused funds were distributed and whether additional charges could be filed. Meanwhile, the streaming company has not yet recovered the lost money and is cooperating with law enforcement in the ongoing legal proceedings.
