Director of “47 Ronin” Arrested for Defrauding Netflix of $11M for Crypto

Carl Erik Rinsch, the Hollywood director known for 47 Ronin, has been arrested on charges of fraud and money laundering. Investigators claim he received $11 million from Netflix to complete the White Horse series but instead invested the funds in cryptocurrency, stocks, and luxury items.

Now, Rinsch faces seven criminal charges, with a potential sentence of up to 20 years in prison. The trial will take place in New York, though a hearing date has yet to be set.

$11 Million Deal: How Rinsch Secured the Funding

In 2018, Carl Erik Rinsch entered into an agreement with a streaming platform, believed to be Netflix. As part of the deal, the company committed $44 million for the production of the sci-fi series White Horse.

A few years later, between 2019 and 2020, Rinsch asked for an additional $11 million to complete the project. Netflix approved the extra funding and transferred the money to an account controlled by a company that Rinsch personally oversaw.

Despite receiving the necessary funds, White Horse was never completed and failed to air. Investigators argue that Rinsch never intended to use the money for the series. Instead, he transferred it through several accounts for his own benefit.

How Netflix Funds Were Redirected to Cryptocurrency and Luxury Purchases

Rinsch transferred a portion of the stolen funds to his brokerage account, where he began speculating in stocks and cryptocurrency. However, his strategy proved disastrous: within just two months, he lost over half of the funds.

The remaining money was spent on personal expenses and luxury items:

• $1.79 million – Paid off credit card debt
• $1.1 million – Covered legal costs (he filed a lawsuit against Netflix, demanding more money)
• $2.4 million – Bought five Rolls-Royce cars and one Ferrari

He spent the remaining funds on other lavish purchases. 

Instead of working on the series, Rinsch treated Netflix’s investment as personal capital, which led to the fraud charges against him.

Director’s Trading Experience: Failures and Attempts to Recover 

After failing in stock trading and incurring significant losses, Rinsch invested in cryptocurrency, hoping to make up for his setbacks. According to case documents, in 2021, he purchased $4 million worth of Dogecoin (DOGE). Amid the hype surrounding the meme coin, his investments surged to $27 million by May of that year.

Investigators found that Rinsch used the Kraken exchange to purchase crypto assets, transferring funds through Schwab Bank. However, despite the gains, authorities argue that the original source of the funds was illicit, as they were obtained through fraudulent means.

These transactions became another key element of the case. Moreover, prosecutors assert that Rinsch didn’t simply lose money on poor investments but used illegally obtained funds to enrich himself through cryptocurrency speculation.

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What’s Next for Rinsch: Arrest, Charges, and Potential Sentencing

Carl Erik Rinsch was arrested in Los Angeles and brought to federal court for the first hearing in his case.

Judge Pedro V. Castillo released Rinsch on a $100,000 bond, requiring him to attend all future court proceedings. The case has been transferred to a New York court, although a trial date has not yet been set.

Rinsch faces seven criminal charges:

• 1 count of fraud (with a maximum sentence of 20 years in prison)
• 1 count of money laundering (up to 20 years in prison)
• 5 counts of illegal financial transactions, each carrying a potential sentence of up to 10 years

Prosecutors argue that Rinsch deliberately misled Netflix by promising to finish the series, but instead, he used the funds for risky investments and a lavish lifestyle. If convicted, he could face decades in prison.

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