Hollywood Director Convicted After $11M Netflix Funds Diverted to Crypto Bets
Hollywood director Carl Erik Rinsch was convicted in Manhattan federal court docket for defrauding Netflix of $11 million supposed for a science fiction tv sequence that by no means materialized.
A federal jury discovered the 48-year-old director responsible of a number of counts of wire fraud and cash laundering, after prosecutors mentioned he siphoned the funds for private use, together with high-risk inventory trades, cryptocurrency investments, luxurious vehicles, watches, and five-star resort stays in California and Spain.
The sequence, initially titled “White Horse” and later renamed “Conquest,” had already obtained roughly $44 million in earlier funding. Rinsch started filming six short-form episodes with help from his mentor, Keanu Reeves, earlier than pitching the undertaking to studios.
Between late 2019 and early 2020, he requested a further $11 million to end manufacturing. Prosecutors mentioned he transferred the funds into private accounts, shedding about half via dangerous investments, then used the remaining funds on cryptocurrency and lavish spending.
Court paperwork show he purchased 5 Rolls-Royces, a Ferrari, high-end watches and clothes, luxurious mattresses and bedding, and repaid $1.8 million in private bank card debt, all with cash Netflix believed was meant for the sequence. Rinsch argued at trial that the dispute was contractual and that he thought of the funds as reimbursement for work already accomplished.
US Attorney for the Southern District of New York Jay Clayton mentioned the conviction comes after a one-week trial earlier than US District Judge Jed S. Rakoff. He added,
“Carl Erik Rinsch took $11 million meant for a TV present and gambled it on speculative inventory choices and crypto transactions. Today’s conviction reveals that when somebody steals from buyers, we’ll comply with the cash and maintain them accountable.”
The prices carry most penalties of a complete of 90 years in jail, though the precise sentence is anticipated to be shorter. Rinsch is scheduled to be sentenced on April 17, 2026.
Rinsch was arrested in March this yr in West Hollywood, California. Earlier studies suggest that he invested in widespread meme coin Dogecoin (DOGE) and made $27 million in income.
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