US federal authorities have arrested and indicted a filmmaker Carl Erik Rinsch, accusing him of spending $11 million given by Netflix to gamble on stocks and crypto instead of using it to finance a science fiction TV show.
Carl Erik Rinsch is facing charges of wire fraud, money laundering, and multiple counts of engaging in illegal monetary transactions after allegedly misusing millions earmarked for the now-canceled Netflix project “White Horse”—later rebranded as “Conquest.”
Unsealed in Manhattan federal court on March 18, the indictment details how Rinsch diverted production funds into risky investments and extravagant personal spending, potentially facing up to 20 years in prison if convicted.
According to the Department of Justice, Netflix transferred $11 million in March 2020 to cover production costs, including storyboarding, actor salaries, and editing.
Instead, Rinsch allegedly funneled over $10.5 million into a personal brokerage account where he executed high-risk trades, including options on a biopharmaceutical company. The strategy backfired, resulting in a $5.5 million loss—all while assuring Netflix the show was “moving forward really well.”
Crypto Trading Brought a Windfall—Then a Spending Spree
Despite the stock losses, Rinsch found better luck in crypto markets. Prosecutors allege that in early 2021, he profited millions trading cryptocurrencies—only to spend the winnings on luxury items immediately.
His alleged purchases include:
- $3.8 million on furniture and antiques
- Five Rolls-Royces
- One Ferrari
- Over $3 million in designer watches and clothing
Rinsch also allegedly used Netflix funds to cover $1.8 million in credit card debt and $1 million in legal fees tied to suing Netflix for even more money and financing his divorce proceedings.
The project never made it to production. Netflix reportedly cancelled the show in 2021 after Rinsch’s behaviour became “erratic,” according to The New York Times.
While the DOJ’s case focuses on $44 million, the Times claims Netflix paid Rinsch a total of $55 million before terminating the deal. The sci-fi series, once billed as a major production, has yet to air.
Rinsch now faces:
- One count of wire fraud (maximum 20 years)
- One count of money laundering (maximum 20 years)
- Five counts of illegal monetary transactions (each carrying up to 10 years)
He was arrested March 18, with his case assigned to Judge Jed Rakoff in New York federal court. Rinsch’s attorney, Annie Carney, declined to comment outside the courtroom.
Crypto, Risk, and Accountability in Hollywood Budgets
This case underscores the volatile intersection of entertainment finance and crypto speculation. What began as funding for a sci-fi series turned into a cautionary tale of unchecked financial oversight and speculative greed.
For Netflix and the broader streaming industry, the scandal highlights the need for stricter controls over large production budgets, especially as the lure of high-risk crypto markets grows.
Ultimately, Rinsch’s gamble may cost him his career and decades of freedom—a harsh lesson in the consequences of turning Hollywood money into personal bets on crypto and stocks.
