Authorities in the United States have arrested and charged a filmmaker, alleging that he misused $11 million provided by the streaming service for gambling on stocks and cryptocurrency instead of funding a sci-fi television project.
In a court filing made public in Manhattan on March 18, federal officials charged Carl Erik Rinsch with fraud and money laundering, with the possibility of facing over two decades in prison if convicted.
The complaint claims that, although the streaming service was not specifically named, Rinsch received this sum in March 2020 intended for story development, talent payments, and editing for a series titled “White Horse,” later changed to “Conquest.”
Instead of utilizing the funds for the intended purpose, Rinsch allegedly transferred approximately $10.5 million into a brokerage account and engaged in highly speculative trades. One particularly risky venture involved call options on a biopharmaceutical firm, resulting in losses exceeding $5.5 million.
While assuring the streaming company that the project was progressing effectively, Rinsch was reportedly squandering its funds, according to the indictment.
Prosecutors noted that the filmmaker had more success in cryptocurrency trading, reportedly earning several million dollars in February 2021. He used those earnings to buy nearly $3.8 million worth of furniture and antiques, along with luxury items that included five Rolls-Royces, a Ferrari, and over $3 million in designer clothing and watches.
Although the US Attorney’s Office did not explicitly name the streaming company behind “Conquest” in the indictment, media reports indicated a dispute between Rinsch and the service, stating that the project was canceled in early 2021 due to Rinsch’s erratic behavior, with the company paying him $55 million. However, officials assert that he received $44 million for a show that has yet to air.
Additionally, prosecutors accused Rinsch of charging nearly $1.8 million to credit cards and spending $1 million on legal fees to pursue further financial claims against the streaming service and cover expenses linked to his divorce.
Rinsch faces one count of wire fraud, one count of money laundering, and five counts of conducting monetary transactions involving proceeds from unlawful activities. Each charge of fraud and money laundering carries a maximum penalty of 20 years, while the monetary transactions charges can result in up to 10 years each.
He was taken into custody on March 18, and the case has been assigned to Judge Jed Rakoff in federal court in New York. Reports indicate that Rinsch’s attorney opted not to comment outside the courtroom.