The US Department of Justice has indicted television director Carl Erik Rinsch for allegedly defrauding a prominent streaming service out of $11 million.
In a statement released on March 18, Acting US Attorney Matthew Podolsky remarked:
“Carl Erik Rinsch devised a plan to embezzle millions by soliciting a substantial investment from a video streaming platform, falsely asserting that the funds would be used to finance a television show he was developing. However, the reality was different. Rinsch is said to have diverted the money for personal expenditures and investments, including highly risky options and cryptocurrency trading.”
If found guilty, Rinsch could face significant legal repercussions. The wire fraud charge carries a potential prison sentence of up to 20 years, while the money laundering charge could contribute an additional 20 years.
Misuse of Production Funds
Rinsch initially obtained funding from a streaming service—reportedly Netflix—for his television series, White Horse.
From 2018 to 2019, the company provided him around $44 million to support existing episodes and finalize the project. However, between 2019 and 2020, he requested an additional $11 million, asserting it was essential to complete the series.
Rather than directing the funds towards production, Rinsch allegedly redirected the money into personal investments. He transferred funds from his company account to a brokerage account, engaging in speculative trading of securities.
This approach proved disastrous, resulting in the loss of over half the funds in less than two months.
Despite these financial challenges, Rinsch did not redirect the leftover funds for White Horse. Instead, he squandered the money on extravagant purchases, including $1.7 million on credit card expenses, $3.7 million on furniture and antiques, and $2.4 million on luxury vehicles.
Additionally, he allocated around $1 million for legal costs, including lawsuits against the streaming company and expenses related to his divorce.
Other lavish purchases included opulent wristwatches, high-end bedding, and extended stays in five-star hotels.
