Carl Erik Rinsch, the filmmaker behind 47 Ronin featuring Keanu Reeves, has been accused of deceiving Netflix to fund his cryptocurrency and stock investments.
Rinsch, a director and screenwriter from Hollywood, was taken into custody and faced an indictment on fraud charges concerning an $11 million deal with Netflix for a sci-fi series titled “White Horse.”
As indicated in a recently unsealed seven-count indictment, Rinsch secured a $44 million investment package back in 2018 to support the series’ production. Between 2019 and 2020, he secured an additional $11 million in funding, which was funneled into a company he completely controlled.
Instead of allocating these funds to White Horse, Rinsch is accused of transferring the $11 million through a series of accounts and eventually channeling the money into his personal brokerage account.
The indictment, revealed by the acting U.S. Attorney for the Southern District of New York and the assistant director of the FBI’s New York Field Office, alleges that Rinsch wrongfully used the money for trading in cryptocurrencies and stocks.
Within just two months of his initial trades, Rinsch purportedly lost more than half of his capital. Authorities also claim that he misused around $5.3 million for lawsuits against Netflix, settling credit card debts, and purchasing one Ferrari and five Rolls-Royces.
Despite facing losses from his crypto ventures, Rinsch allegedly reinvested in digital currencies. The charges indicate that he earned $27 million from a $4 million investment in Dogecoin (DOGE). According to a report, these funds were transferred to a Kraken account through a deposit at Schwab Bank.
At the age of 47, Rinsch is at risk of receiving up to 20 years in prison for a single count of wire fraud. Other charges, such as money laundering and unlawful conduct, could lead to additional sentences ranging from 10 to 20 years if a Los Angeles court imposes the maximum penalties.
No court date has been established as of now, and Rinsch was released on a $100,000 bail bond as directed by U.S. Magistrate Judge Pedro V. Castillo.