A Hollywood writer-director has been arrested for an alleged scam he tried to run on Netflix, according to authorities.
Netflix is full of a lot of TV shows and films and many directors could only dream of getting a show on the streaming giant... well, seemingly not Carl Erik Rinsch.
The 47-year-old Rinsch, most known for directing the 2013 flop 47 Ronin starring Keanu Reaves, has been arrested for trying to swindle Netflix out of a whole lot of money. $11 million to be precise.
Authorities have said that he has been charged with one count of wire fraud and money laundering and five counts of engaging in monetary transactions in property derived from specified unlawful activity.
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They have said that the streaming platform initially paid about $44 million to purchase an unfinished show called White Horse. They ended up giving up more money, another $11 million, as he said he needed it to finish the show.
Police have said Rinsch didn’t use that money to finish the show, and alleged he transferred it into a personal brokerage account and quickly lost about half of the $11 million in failed investments in two months.
According to the indictment, he also blew $395k on a stay at the Four Seasons and various luxury rental properties, and over $1 million on lawyers with the aim of suing Netflix for more cash, along with legal fees for his divorce.
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Acting U.S. Attorney Matthew Podolsky spoke out about the arrest in a press release on Tuesday (March 18).
He said: “As alleged, Carl Erik Rinsch orchestrated a scheme to steal millions by soliciting a large investment from a video streaming service, claiming that money would be used to finance a television show that he was creating.
“But that was fiction. Rinsch instead allegedly used the funds on personal expenses and investments, including highly speculative options and cryptocurrency trading.
“Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud and will bring those who cheat and steal to justice.”
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FBI Assistant Director Leslie Backschies also made a comment condemning Rinsch for his alleged actions.
Backschies said: “Carl Rinsch allegedly stole more than $11 million from a prominent streaming platform to finance lavish purchases and personal investments instead of completing a promised television series. The FBI will continue to reel in any individual who seeks to defraud businesses.”
The attorney’s office also claimed that even after Rinsch allegedly lost half the money on ill-fated investments, he did not take the rest of the $11 million to finish the show, instead choosing to bet on cryptocurrency and buy personal luxury items.
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AP reports that Rinsch's attorney Annie Carney declined to comment outside court yesterday (March 18), saying she had not reviewed the evidence against the director.
UNILAD has contacted Netflix for a comment.
Gerrard Kaonga