Director Charged With Netflix Fraud After Splurging on Crypto Instead of Finishing Sci-fi Series (npr.org) 18
Hollywood filmmaker Carl Erik Rinsch has been charged with defrauding Netflix of $11 million after allegedly misusing funds intended for an unfinished science fiction series, federal prosecutors said.
Rinsch, 47, was arrested in West Hollywood this week on charges of wire fraud, money laundering and unlawful monetary transactions that could result in decades of imprisonment if convicted. The FBI and Acting U.S. Attorney for the Southern District of New York allege Rinsch diverted funds meant for his series "Conquest" to speculate on cryptocurrency, stay in luxury hotels and purchase high-end items including five Rolls-Royces and a Ferrari.
Netflix had paid Rinsch $44 million between 2018 and 2019 for the science fiction project about an artificial humanlike species. Prosecutors say he then requested an additional $11 million but never completed the production. An arbitrator ruled in Netflix's favor last year, ordering Rinsch to pay the company $11.8 million. Rinsch appeared in federal court with shackles and posted a $100,000 bond.
Rinsch, 47, was arrested in West Hollywood this week on charges of wire fraud, money laundering and unlawful monetary transactions that could result in decades of imprisonment if convicted. The FBI and Acting U.S. Attorney for the Southern District of New York allege Rinsch diverted funds meant for his series "Conquest" to speculate on cryptocurrency, stay in luxury hotels and purchase high-end items including five Rolls-Royces and a Ferrari.
Netflix had paid Rinsch $44 million between 2018 and 2019 for the science fiction project about an artificial humanlike species. Prosecutors say he then requested an additional $11 million but never completed the production. An arbitrator ruled in Netflix's favor last year, ordering Rinsch to pay the company $11.8 million. Rinsch appeared in federal court with shackles and posted a $100,000 bond.
Let me guess... (Score:2)
He only got caught because of the rolls.
People gonna notice that man.
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He got caught because he didn't ultimately deliver a show for the money he paid. It could have been the worst, contractually obligatory show ever but if he released it, then he could have kept a good chunk of the money he was paid.
It seems clear to me that Netflix is taken for a ride all the time, paying money for something and getting a turd in return. Look at The Electric State as a recent example of that. Purportedly this 2 hour movie cost $320 million and was critically panned. Even if some people watch
Eat the rich (Score:1)
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He sold it in March 2021 during peak Elon DOGE mania, and made a cool $36.7 millino profit off the $4 million....
But he legit lost $6 million of Netflix's money in 2018 gambling on a recession hitting that never came.
When Netflix found out about the $36 million profit, supposedly $44 million on the blockchain at one point, that's when they initiaed the legal proceedings.
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That crypto better be $TRUMP coin... (Score:2)
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https://crypto.news/47-ronin-director-allegedly-scammed-11m-from-netflix-to-buy-doge-other-crypto/
Why so long to charge him? (Score:3)
It's been like 5+ years .. how long does it take them to figure this stuff out?
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Good question. The delay is a proxy for corruption, in the same way the size of the tax code is a proxy for corruption. It takes a while to ensure that only the disposable people are going to get hurt in such a prosecution.
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The movie producer did not use a Netflix approved camera and production workflow. I expect it took 5 years to come to a head, because it is proven you can deliver any piece of shit to Netflix as long as it was filmed on the right series of camera, they will post and promote it like Harvey chased after a starlet.
Yes but Netflix now has an even better script (Score:4, Informative)
Hey Rinsch (Score:2)