Carl Erik Rinsch, director of the film 47 Ronin starring Keanu Reeves, has been charged with defrauding Netflix to buy cryptocurrencies and stocks.
Rinsch, a Hollywood director and screenwriter, was arrested and indicted on fraud charges tied to an $11 million agreement with Netflix for a science fiction TV series called “White Horse.”
According to the seven-count unsealed indictment, Rinsch secured a $44 million investment package in 2018 to fund the show’s production. Between 2019 and 2020, he obtained an additional $11 million in funding, which was transferred to a company wholly controlled by him.
Rather than using the funds for White Horse, Rinsch allegedly moved the $11 million through a network of accounts and ultimately deposited the funds into his personal brokerage account.
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, claims Rinsch illegally used the funds to trade cryptocurrencies and stocks.
Within two months of his first trades, Rinsch had reportedly lost over half of the capital. Authorities also allege that he spent about $5.3 million suing Netflix for cash, paying credit card bills, and acquiring one Ferrari sports car and five Rolls-Royces.
Despite his initial losses from crypto trading, Rinsch allegedly reinvested in digital assets. According to the charges, he made $27 million from a $4 million investment into Dogecoin (DOGE). The funds were sent to a Kraken account through a Schwab Bank deposit, per a report by The New York Times.
Rinsch, now 47, faces up to 20 years in prison for one count of wire fraud alone. Other charges, including money laundering and unlawful activity, could each carry sentences of 10 to 20 years if the maximum penalties are imposed by a Los Angeles Court.
A court date has not been set yet. Rinsch was released on a $100,000 bail bond by order of U.S. Magistrate Judge Pedro V. Castillo.
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