The US Department of Justice (DOJ) has brought charges against television director Carl Erik Rinsch for allegedly defrauding a major streaming service of $11 million.
Acting US Attorney Matthew Podolsky stated in an official statement dated March 18: “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.”
If convicted, Rinsch could face extensive prison time. The charge of wire fraud could lead to a sentence of up to 20 years, while money laundering adds another potential 20 years. Furthermore, he faces five counts of illegal monetary transactions, with a maximum sentence of 10 years for each.
Misuse of Production Funds
Rinsch initially secured funding from a streaming platform, reportedly Netflix, to produce his television series, “White Horse.” Between 2018 and 2019, the company provided approximately $44 million to cover existing episodes and to bring the project to completion. However, between 2019 and 2020, he requested an additional $11 million, claiming it was necessary to finalize the series.
Instead of using the funds for production, Rinsch allegedly diverted the money into personal investments. He transferred the money from his company account into a brokerage account, and engaged in speculative securities trading. This strategy proved unsuccessful, with over half of the funds lost within two months’ time.
Despite these financial setbacks, Rinsch did not use the remaining funds to make progress on “White Horse.” He instead spent the money on lavish purchases, including $1.7 million in credit card payments, $3.7 million on furniture and antiques, and $2.4 million on luxury cars. Additionally, he allocated approximately $1 million towards legal expenses, including lawsuits against the streaming company and divorce-related costs. Extravagant purchases included items such as high-end wristwatches, luxury bedding, and extended stays in five-star hotels, according to court documents.
