Carl Erik Rinsch, director of the 2013 movie 47 Ronin starring Keanu Reeves, was arrested and charged with money laundering and wire fraud. It has come to attention that he has allegedly used money received from Netflix to buy cryptocurrencies such as dogecoin and fund his luxury lifestyle.
In a seven-count unsealed indictment, prosecutors allege that Rinsch misused $11 million which was intended for his science fiction TV series White Horse.
Rather than using the money to finish the project, he supposedly channeled the funds into his own accounts and utilized them for speculative investments, high-end purchases, and legal disputes.
In 2018, Netflix committed to investing in White Horse with a $44 million investment. Subsequently, between 2019 and 2020, Rinsch asked for another $11 million, stating the show required more funds. Instead of using it on the show, however, he reportedly sent the money through several accounts before putting it into his own brokerage account.
The money was illegally spent by Rinsch on trading cryptocurrencies and stocks, as stated in an indictment made by acting U.S. Attorney for the Southern District of New York Matthew Podolsky and FBI assistant director of the New York Field Office Leslie Backschies.
In two months, he had apparently lost more than half the sum on speculative investments, such as speculative options and an S&P 500 ETF. Though losing money at first, he reinvested and was able to make a $4 million investment in Dogecoin worth $27 million by 2021.
The authorities further say that he used around $5.3 million on litigations against Netflix, settling credit card loans, and buying of a Ferrari sports vehicle and five Rolls-Royces. Even though there were these extravaganzas, Rinsch never finished White Horse. Netflix only received six short shows, far less than the whole series they had paid for, it is claimed.
Rinsch, 47, could face severe legal repercussions. The wire fraud alone comes with up to a 20-year prison term. The money laundering accusation potentially tacks on an additional 20 years, and five of the counts of dealing with money obtained through criminal activity each have up to 10 years.
If found guilty of all charges, Rinsch would be facing as much as 90 years in prison. He was released on a $100,000 bail bond, but no court date has been set.
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