Hollywood Director Convicted of $11 Million Fraud in Netflix Case

Carl Erik Rinsch, a Hollywood director known for his work on "47 Ronin," has been convicted for fraudulently obtaining $11 million from Netflix. A significant portion of these funds was invested in cryptocurrency. The court's decision has raised concerns about the implications for artists involved in contractual disputes.

Key Takeaways

Carl Erik Rinsch was found guilty of stealing $11 million from Netflix, part of which was invested in cryptocurrency.
He faces severe penalties, including possible prison time of up to 20 years for wire fraud and money laundering.
The director reportedly amassed significant profits by investing in Dogecoin but lost a large portion of the funds shortly after.
Rinsch's attorney claims the verdict sets a troubling precedent for artists involved in financial disputes with major corporations.

Fraud

Background of the Case

Carl Erik Rinsch, 49, a notable director and writer, was convicted of defrauding Netflix out of $11 million. The U.S. Attorney’s Office in New York reported that Rinsch misappropriated funds intended for a television production, using the money for high-risk investments, including speculative stock options and cryptocurrency transactions.

Rinsch faced serious charges including one count of wire fraud and one count of money laundering, each carrying a maximum of 20 years in prison. Additionally, he was convicted on five counts related to monetary transactions in property derived from unlawful activities, each of which could result in a maximum of 10 years behind bars. Rinsch is scheduled to be sentenced on April 17, 2026.

The Dogecoin Gamble

Among his questionable financial activities, Rinsch is accused of investing $4 million in Dogecoin (DOGE), which reportedly generated almost $27 million in profits. However, this investment was supposed to support the production of a new show.

In 2018, Rinsch entered into an agreement with an undisclosed streaming service, which was set to pay him $44 million for his science fiction project titled ‘White Horse’. After Netflix paid him the contracted amount, Rinsch sought additional funds. In late 2019 and early 2020, Netflix agreed to provide him with another $11 million to complete the production, which was transferred in March.

Within a few days of receiving the funds, Rinsch funneled the money through multiple bank accounts into his personal brokerage account. He utilized these funds for various personal expenditures, including speculative securities trading. Unfortunately, his trading decisions were largely unsuccessful, leading to a loss of over half of the initial investment within two months.

In addition to his trading losses, Rinsch reportedly spent substantial amounts on luxury items and credit card debts, further depleting the funds intended for the show's production. Ultimately, he never completed the series.