ISTANBUL - Filmmaker Carl Erik Rinsch has been charged with wire fraud and money laundering in connection with an US$11 million scheme to defraud Netflix, Anadolu Ajansi reported, citing media reports.
The New York Times reported on Tuesday that federal prosecutors in New York accused Rinsch of misusing funds intended for a sci-fi series. He allegedly diverted the money to personal investments and lavish expenses.
The indictment, which was unsealed on Tuesday, alleges that between 2018 and early 2020, Rinsch placed the funds into a brokerage account and used them to trade securities rather than produce the promised show.
Rinsch, who was arrested in West Hollywood, had initially pitched the series-White Horse, later renamed Conquest-to Netflix during the streaming boom. The platform, however, halted development in early 2021, citing erratic behaviour.
Rinsch later used the remaining production funds to finance stays at luxury hotels in California and Spain and to purchase high-end furniture and multiple luxury cars, claiming they were props for the show, the report said.
In 2023, an arbitrator ruled against Rinsch, ordering him to pay nearly US$12 million in damages and legal fees to Netflix.
Netflix ultimately wrote off the US$55 million spent on the failed project. - BERNAMA-ANADOLU