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A Hollywood director has been arrested and charged with defrauding Netflix out of millions of dollars in connection with a streaming show that was never completed.
In an indictment unsealed Tuesday, prosecutors alleged “47 Ronin” director Carl Rinsch engaged in a scheme to defraud Netflix after securing $11 million from the company but not using the money for its intended purpose of completing an unfinished science-fiction series.
USA TODAY has reached out to Netflix and a representative for Rinsch for comment.
The indictment did not name the streaming company involved in the case, but a 2023 New York Times investigation confirmed it was Netflix.
According to the indictment, between 2018 and 2019, Netflix paid $44 million for “White Horse,” a sci-fi show from Rinsch that was to follow the creation of superintelligent clones. By 2020, the streamer paid an additional $11 million after Rinsch requested more funds and falsely claimed that this money would be used to complete production, prosecutors said.
But Rinsch allegedly transferred nearly all of this additional money into personal accounts and lost more than half of it after making a “number of extremely risky purchases of securities.” He allegedly failed to inform Netflix he lost the money, instead telling the streamer the show was “moving forward really well.”
The director allegedly then used the remaining money to speculate on cryptocurrency and on personal expenses, including five Rolls-Royces and a Ferrari.
Rinsch never delivered a completed show, nor did he return the money to Netflix, prosecutors said.
The filmmaker was charged with wire fraud, money laundering and engaging in monetary transactions in property derived from specified unlawful activity. Police arrested him Tuesday in West Hollywood.
“Rinsch’s arrest is a reminder that this office and our partners at the FBI remain vigilant in the fight against fraud and will bring those who cheat and steal to justice,” acting U.S. Attorney Matthew Podolsky said in a statement.
Rinsch is best known for directing the 2013 action fantasy film “47 Ronin,” which starred Keanu Reeves. The movie bombed at the box office, grossing less than $40 million domestically. According to Variety, the production budget was $175 million. Rinsch has also made short films and music videos but has never directed another movie or TV series.
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