• A Hollywood director has been arrested on charges of defrauding Netflix of $11 million.
• Carl Erik Rinsch misappropriated funds intended for a sci-fi series, "White Horse."
• Rinsch allegedly diverted the money to luxury purchases and risky investments.
• He faces federal charges of wire fraud and money laundering, with potential penalties of up to 90 years in prison.

Hollywood director and writer Carl Erik Rinsch, known for his work on “47 Ronin,” was arrested and charged with wire fraud and money laundering in a scheme that allegedly swindled Netflix out of $11 million intended for a sci-fi series titled "White Horse." According to federal prosecutors, Netflix initially invested approximately $44 million between 2018 and 2019 to fund the production of the show, which centered on the concept of artificial human clones.

In March 2020, Rinsch requested an additional $11 million, claiming that further funds were necessary to complete the project. Rather than utilizing this new funding for the intended purpose, Rinsch reportedly transferred the money to his personal accounts for risky investments, including lavish purchases such as a fleet of Rolls-Royces and a Ferrari. The indictment highlights that Rinsch lost around half of the additional investment within just two months.

While financial woes escalated, Rinsch falsely assured Netflix that the production was successfully progressing, according to the court documents. His subsequent spending spree totaled about $10 million, which included approximately $1.8 million on credit card bills, $3.7 million on furniture and antiques, and $652,000 for luxury clothing and other items.

A court filing described his financial trajectory as increasingly erratic, with friends noting his declining mental stability following his Netflix agreement. Rinsch now faces serious consequences if convicted, as he could receive a sentence of up to 90 years for his alleged crimes. His initial court appearance has already taken place, and he is expected to be tried in New York.

For more detailed coverage, visit the original sources: SFGate, Business Insider, BBC.