Carl Erik Rinsch, a Los Angeles-based film director and writer, has been arrested and charged with defrauding a major streaming platform of $11 million, which he allegedly spent on speculative trading and luxury purchases instead of completing a science fiction television series.

The US Attorney’s Office for the Southern District of New York announced the charges on Tuesday, revealing that Rinsch misused the funds intended for his project, White Horse. Acting US Attorney Matthew Podolsky described the case as a deliberate scheme to siphon money under false pretenses.

“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,” Podolsky said in a statement. “Rinsch’s arrest is a reminder that this Office and our partners at the FBI remain vigilant in the fight against fraud.”‍

Misuse of Funds

According to the indictment, Rinsch initially secured $44 million from the unnamed streaming company between 2018 and 2019 to develop White Horse. However, by 2020, he requested an additional $11 million to complete the series. 

Once the funds were transferred in March 2020, prosecutors allege that Rinsch diverted the money for personal use, including high-risk investments in securities and cryptocurrency. His trading resulted in significant losses within two months. 

Despite these setbacks, Rinsch allegedly continued spending the remaining funds on extravagant personal expenses. He reportedly paid $1.78 million in credit card bills and spent another $1.07 million on legal fees, including lawsuits against the streaming service and divorce-related matters.

In addition to these expenses, he allegedly used $395,000 on luxury hotel stays and rental properties, while also spending $3.78 million on furniture and antiques, including $638,000 for two mattresses and $295,000 on luxury bedding. His spending spree extended to high-end vehicles, with $2.4 million reportedly used to purchase five Rolls-Royces and a Ferrari. Rinsch also allegedly spent $652,000 on designer watches and clothing.

FBI Assistant Director Leslie Backschies condemned Rinsch’s actions, stating, “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.”‍

Legal Consequences

Rinsch, 47, is facing multiple charges, including one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of money laundering, also carrying a maximum sentence of 20 years. 

Additionally, he has been charged with five counts of engaging in monetary transactions with illegally obtained funds, each of which carries a maximum sentence of 10 years.

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