Carl Erik Rinsch, a Hollywood writer and director, was arrested for allegedly defrauding Netflix of $11 million.
According to The Associated Press, Rinsch was detained on Tuesday in West Hollywood, California, on accusations of wire fraud and money laundering for allegedly orchestrating a plot to defraud the streaming service.
He is suspected of using the funds to purchase a Ferrari, Rolls-Royces, and cryptocurrency ventures.
According to the prosecution, Rinsch was initially compensated $44 million by Netflix for his unfinished series “White Horse,” but the filmmaker asked for an extra $11 million to finish it.
Prosecutors claim that Rinsch moved the $11 million to his personal accounts and made investments that caused him to lose half of that amount in just two months.
According to the accusation, Rinsch invested the remaining $11 million that Netflix had given him in the cryptocurrency market, making a profit that he subsequently moved to his own account.
Rinsch allegedly spent $10 million on personal belongings, including $1.8 million for credit card bills, $1 million for attorneys to sue the streaming service for “more money,” $3.8 million for antiques and furniture, $2.4 million for five Rolls-Royces and one Ferrari, and $652,000 for clothing and watches, according to the prosecution.
On Tuesday, Rinsch appeared in court wearing trousers and a turtleneck sweater, his hands and ankles shackled. On Tuesday, U.S. Magistrate Judge Pedro V. Castillo granted Rinsch release on $100,000 bond.
During the hearing, Rincsh’s lawyer, Annie Carney, stated that the accusations against her client are “purely financial” and refused to comment outside of the courthouse.
There is no scheduled date for Rinsch’s upcoming court appearance in New York, where the indictment was filed.
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