https://ktla.com/entertainment/netflix-gave-him-11-million-to-produce-a-tv-show-he-spent-it-on-luxury-cars-and-crypto-doj-says/

A Hollywood filmmaker who directed the Keanu Reeves-led samurai epic “47 Ronin” was arrested and charged with multiple accounts of fraud for allegedly bilking millions from Netflix for a TV show he promised but never delivered.

Carl Erik Rinsch was arrested earlier this week in West Hollywood and appeared in federal court to face several charges for defrauding the streaming giant, according to the U.S. Department of Justice.

Rinsch, 47, whose credits also include several short films and commercial ads, had been hired by Netflix in 2018 to produce a sci-fi series titled “White Horse.” After Netflix spent $44 million on the project, the show was only partially completed, the DOJ says.

Netflix eventually agreed to transfer $11 million more to a company controlled by Rinsch in order to purchase the existing episodes and get the show over the finish line.

But Rinsch, prosecutors allege, didn’t use that money to complete the project. Instead, he used it to fund his lifestyle and make several failed investments.

Within days of receiving the Netflix cash, Rinsch allegedly transferred the funds to different bank accounts before consolidating them into a brokerage account. He then used those funds to purchase securities and cryptocurrencies that proved to be unsuccessful investments.

“In less than two months after receiving $11 million … Rinsch had lost more than half of those funds,” the DOJ says,

He continued to use remaining cash to pay for personal expenses, including hundreds of thousands of dollars on luxury hotel stays and vacation rental properties, over $3.7 million on furniture and antiques, nearly $1 million on beds and linen, and five Rolls-Royces and a Ferrari totalling more than $2.4 million. He also spent about $650,000 on watches and clothing.

With the remaining funds, he allegedly paid some of his credit card debt and then hired lawyers to settle his divorce and attempt to sue Netflix for even more money.

The series was never completed and the funds were never returned, charging documents state.

Rinsch, who lives in Los Angeles, has been charged with wire fraud, money laundering and additional counts related to the scheme, and could face decades in prison if convicted.

The case was investigated by the FBI.

Acting U.S. Attorney Matthew Podolsky called Rinsch’s arrest a strong reminder that the DOJ and the FBI “remain vigilant in the fight against fraud and will bring those who cheat and steal to justice.”

“47 Ronin,” Rinsch’s only directorial effort to make it to theaters, boasts a 16% rating on Rotten Tomatoes.